A $300 million decrease in investment spending will increase real GDP by more than $300 million.

Name: A $300 million decrease in investment spending will increase real GDP by more than $300 million.
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Question

Quizplus · Accepted Answer

A decrease in investment spending will lead to a decrease in overall spending in the economy, which will have a negative impact on real GDP. Therefore, a decrease in investment spending will not increase real GDP by more than $300 million, but rather the opposite.

A $300 Million Decrease in Investment Spending Will Increase Real