Solved

If an Increase of $10 Billion in Investment Results in an Increase

Question 66

Multiple Choice

If an increase of $10 billion in investment results in an increase in equilibrium expenditure of $40 billion, the multiplier equals


A) $10 billion × $40 billion = $400 billion.
B) $10 billion - $40 billion = -$30 billion.
C) $10 billion ÷ $40 billion = 0.25.
D) $40 billion ÷ $10 billion = 4.
E) $40 billion - $10 billion = $30 billion.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents