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If an Increase in Investment Spending of $20 Million Results

Question 207

Multiple Choice

If an increase in investment spending of $20 million results in a $200 million increase in equilibrium real GDP, then

A) the multiplier is 0.1.
B) the multiplier is 1.
C) the multiplier is 10.
D) the multiplier is 100.
E) the multiplier is 180.

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