Solved

If the Multiplier Is 4,a $10 Billion Increase in Autonomous

Question 58

Multiple Choice

If the multiplier is 4,a $10 billion increase in autonomous investment will cause a


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

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q53: Which of the following would result from

Q54: If households save $30 billion more at

Q55: If the level of autonomous spending increases

Q56: An increase in the price level will<br>A)shift

Q57: If the marginal propensity to consume is

Q59: The aggregate demand curve illustrates a relationship

Q60: If the price level rises,<br>A)the aggregate expenditures

Q61: The larger the MPS,the smaller the multiplier

Q62: On the aggregate expenditure graph,if autonomous saving

Q63: A decrease in the price level will