In the third quarter of 2008, investment in the U.S. totaled $1.4 trillion and in 2007, investment was
$1)3 trillion. The change in investment

Question

Quizplus · Accepted Answer

The change in investment represents a change in autonomous expenditure, which is independent of changes in income or output. It is not a change in induced expenditure, which is dependent on income or output. The multiplier may or may not increase depending on the magnitude of the change and the multiplier formula, but this is not directly related to the change in investment. Also, the change in investment does not necessarily mean a change in equilibrium expenditure, as other factors such as consumption, government spending, and net exports may also affect the overall level of expenditure.

In the Third Quarter of 2008, Investment in the U