-In the Above Table, Suppose Investment Decreases by $0

question 70

Multiple Choice

$$\begin{array} { | l | l | } \hline \begin{array} { l } \text { Real GDP } \\\text { (trillions of 2005 } \\\text { dollars) }\end{array} & \begin{array} { l } \text { A ggregate } \\\text { expenditure } \\\text { (trillions of 2005 } \\\text { dollars) }\end{array} \\\hline 0 & 0.3 \\\hline 1.0 & 1.2 \\\hline 2.0 & 2.1 \\\hline 3.0 & 3.0 \\\hline 4.0 & 3.9 \\\hline 5.0 & 4.8 \\\hline\end{array}$$
-In the above table, suppose investment decreases by $0.1 trillion. The multiplier equals

• A) 9.0.
• B) 10.0.
• C) 5.0.
• D) None of the above answers are correct.

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