If Investment Increases by $300 And, in Response, Equilibrium Aggregate

question 377

Multiple Choice

If investment increases by $300 and, in response, equilibrium aggregate expenditure increases by
$600, the multiplier is

• A) 5.
• B) 2.
• C) 0.2.
• D) 0.5.

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Definitions:

Ironing

the process of using a heated tool (iron) to remove wrinkles from fabric, typically garments, enhancing their appearance.

Suppliers

Individuals or businesses that provide goods or services to consumers, businesses, or other organizations.

Households

Units of residence in an economy that include all individuals who live together and make joint economic decisions.

Goods And Services

The output produced by economic activities, encompassing tangible products (goods) and intangible items (services).