In the Third Quarter of 2008, Investment in the U

In the third quarter of 2008, investment in the U.S. totalled $1.4 trillion and in 2007, investment was
$1) 3 trillion. In addition, third quarter real GDP was $11 trillion. Suppose the MPC in the U.S. is 0.8 Ignoring the effects of imports and taxes, the multiplier is and the change in investment w decrease equilibrium expenditure by .

A) 5; $1 trillion.
B) 2; $200 million.
C) 2; $1 trillion.
D) 5; $500 million.