Refer to the information provided in Figure 23.11 below to answer the question(s) that follow. Figure 23.11
-Refer to Figure 23.11. A ________ increase in investment changes equilibrium output to $240 million.
A) $5 million
B) $10 million
C) $20 million
D) $50 million

Question

Refer to the information provided in Figure 23.11 below to answer the question(s) that follow.  Figure 23.11
-Refer to Figure 23.11. A ________ increase in investment changes equilibrium output to $240 million.
A) $5 million 
B) $10 million 
C) $20 million 
D) $50 million

Quizplus · Accepted Answer

The correct choice is $10 million because the multiplier effect amplifies the initial increase in investment to reach the new equilibrium output of $240 million.

Refer to the Information Provided in Figure 23