If the multiplier is 5 and investment increases by $3 billion, equilibrium real GDP will increase by:
Question:
If the multiplier is 5 and investment increases by $3 billion, equilibrium real GDP will increase by:
a. $2 billion.
c. $8 billion.
b. $3 billion.
d. $15 billion.
e. none of the above.
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The answer is d 15 billion Explanation The formula for the change in equili...View the full answer
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Related Book For
Macroeconomics
ISBN: 9781264112456
22nd Edition
Authors: Campbell McConnell, Stanley Brue, Sean Flynn
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