If the multiplier is 4,a $10 billion increase in autonomous investment will cause a
A) $10 billion increase in equilibrium investment
B) $40 billion increase in equilibrium investment
C) $40 billion increase in equilibrium real GDP demanded
D) $400 billion increase in equilibrium real GDP demanded
E) $40 billion increase in consumption spending
Correct Answer:
Verified
Q59: That fraction of a change in disposable
Q61: If the marginal propensity to consume is
Q62: Which is true regarding the marginal propensity
Q64: Exhibit 9-9 Q65: If the marginal propensity to save is Q66: Which of the following would result from Q67: If autonomous consumption rises by $0.8 trillion Q68: If the simple multiplier is 8,the marginal Q92: If the spending multiplier is greater than Q107: The smaller the marginal propensity to save,other
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents