If you know the value of the multiplier and the amount of a change in autonomous investment,you can calculate

Question

Quizplus · Accepted Answer

Knowing the value of the multiplier and the amount of a change in autonomous investment allows us to calculate the change in equilibrium output using the formula: change in equilibrium output = multiplier x change in autonomous investment. This is because an increase in autonomous investment, which is not due to changes in output, will lead to a multiplied increase in total output, as a result of the multiplier effect. The other options, such as changes in the interest rate or money supply, are not necessarily affected by changes in autonomous investment alone and would require additional information or assumptions.

If You Know the Value of the Multiplier and the Amount