Question: Suppose that each 0.1 percentage point decrease in the equilibrium interest rate induces a$10 billion increase in real planned investment spending by businesses. Inaddition, the

Suppose that each 0.1 percentage point decrease in the equilibrium interest rate induces a$10 billion increase in real planned investment spending by businesses. Inaddition, the autonomous spending multiplier is3 and the money multiplier is equal to2. Furthermore, every$20 billion increase in the money supply brings about a 0.1 percentage point reduction in the equilibrium interest rate.

How much must real planned investment increase if the Fed desires to bring about a $200 billion increase in realGDP?

$_____billion.(Round your answer to a wholenumber.)

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