The Multiplier Is 2

question 375

Multiple Choice

The multiplier is 2.5 and the SAS curve is upward sloping. Investment increases by $20 billion. In the short run, equilibrium real GDP will

• A) increase by $50 billion.
• B) increase by less than $50 billion.
• C) decrease by less than $50 billion.
• D) decrease by $50 billion.

---

Definitions:

Photoshoots

involve the process of taking professional photographs, usually of a person, group, or product, often conducted by a photographer in a studio or outdoor location.

Loan Repayment

The act of paying back money previously borrowed from a lender, typically including both the principal and interest.

Widow

A woman whose spouse has died and who has not remarried.

Material Facts

Important details or information that could influence a decision or the outcome of a legal case.