If the Spending Multiplier Is Greater Than 1

Multiple Choice

If the spending multiplier is greater than 1.0,a $200 billion increase in autonomous investment will cause:

A) equilibrium investment to increase by less than $200 billion.
B) equilibrium investment to decrease by more than $200 billion.
C) equilibrium real GDP demanded to increase by more than $200 billion.
D) equilibrium real GDP demanded to decrease by less than $200 billion.
E) equilibrium saving to decrease by more than $200 billion.