In Preparing Their Estimates of the Stimulus Package's Effect on GDP,Obama

Multiple Choice

In preparing their estimates of the stimulus package's effect on GDP,Obama administration economists estimated a government purchases multiplier of 1.57.This indicates that a $1 billion increase in government purchases would increase equilibrium real GDP by

A) $1 billion.
B) $1.57 billion.
C) $15.7 billion.
D) $157 billion.