Question 7 2 points Forum Assuming that we are dealing with an economy with no government spending or trade, an economy's aggregate demand is given by its domestic consumption C and investment /, AD =C +/ = Co+ ciY +1. In the economy's goods market equilibrium this equals its output: A D = Y. Solving for Y this yields: Y = [1/(1 - C1 )] (co+ 1) Given this equation, which of the following statements is correct? The multiplier is given by 1 / (c 1 - 1). The boost in the economy's output is the different, regardless of whether the aggregate demand shock comes from an increase in investment / or in autonomou consumption co. O If c 1 = 1/3, then a $3 million increase in investment would result in around $4.5 million increase in output, ceteris paribus. O The smaller the marginal propensity to consume (1 - c 1), the larger the multiplier. A Click Submit to complete this assessment