Suppose the multiplier is 4.What would be the cause of a $10 billion increase in autonomous investment?

Name: Suppose the multiplier is 4.What would be the cause of a $10 billion increase in autonomous investment?
Brand: Quizplus
Rating: 4.8 (47 reviews)

Question

Quizplus · Accepted Answer

The multiplier effect indicates that an initial change in autonomous investment will lead to a larger change in equilibrium real GDP demanded. With a multiplier of 4, a $10 billion increase in investment results in a $40 billion increase in GDP demanded.

Suppose the Multiplier Is 4