If the multiplier is 4, a $10 billion increase in investment will cause aggregate output to increase by:
A) $60 billion
B) $40 billion
C) $50 billion
D) $10 billion
Correct Answer:
Verified
Q22: The increase in unemployment that occurs during
Q23: The net export component of aggregate demand
Q24: The multiplier effect refers to:
A) the total
Q25: If the MPW increases, the multiplier will:
A)
Q26: The portion of unemployment that is due
Q28: Consumption smoothing is the idea that:
A) you
Q29: The formula for the multiplier is:
A) 1/MPC
B)
Q30: The level of private sector investment will
Q31: If consumption is $25 000 when income
Q32: An increase in the rate of interest
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