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If an Increase in Investment Spending of $50 Million Results

Question 274

Multiple Choice

If an increase in investment spending of $50 million results in a $400 million increase in equilibrium real GDP, then

A) the multiplier is 0.125.
B) the multiplier is 3.5.
C) the multiplier is 8.
D) the multiplier is 14.3.
E) the multiplier is 50.

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