Question: 8. If a $50 billion initial increase in spending leads to a $250 billion change in real GDP, how big is the multiplier? LO10.5 a.

8. If a $50 billion initial increase in spending leads to a $250 billion change in real GDP, how big is the multiplier? LO10.5

a. 1.0.

b. 2.5.

c. 4.0.

d. 5.0.

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