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Suppose Investment Rises by $50 Billion at Each Price Level

Question 52

Multiple Choice

Suppose investment rises by $50 billion at each price level. If the value of the multiplier is 1.5, what is the amount of change in real GDP demanded at each price level?


A) $50 billion
B) $75 billion
C) $125 billion
D) $150 billion

Correct Answer:

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