Suppose the Spending Multiplier Is Greater Than 1

Multiple Choice

Suppose the spending multiplier is greater than 1.0.Which of the following will be the result of a $200 billion increase in autonomous investment?  

A)  Equilibrium investment will increase by less than $200 billion. 
B)  Equilibrium investment will decrease by more than $200 billion. 
C)  Equilibrium real GDP demanded will increase by more than $200 billion. 
D)  Equilibrium real GDP demanded will decrease by less than $200 billion.