In 2007, investment in France increased by 7 billion euros. Assume the price level was constant, the multiplier was 5 and the economy was at full employment. As a result, equilibrium expenditure
A) increased by 35 billion euros.
B) increased by 1.4 billion euros.
C) decreased by 35 billion euros.
D) decreased by .71 billion euros.
Correct Answer:
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