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Suppose the Multiplier Is 4

Question 133

Multiple Choice

Suppose the multiplier is 4.What would be the cause of a $10 billion increase in autonomous investment?  


A)  a $10 billion increase in equilibrium investment 
B)  a $40 billion increase in equilibrium investment 
C)  a $40 billion increase in equilibrium real GDP demanded 
D)  a $400 billion increase in equilibrium real GDP demanded

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