The Expenditure Multiplier Equals 5 and There Is a $3

question 37

Multiple Choice

The expenditure multiplier equals 5 and there is a $3 million increase in investment. Equilibrium expenditure

• A)increases by $0.60 million.
• B)increases by $15 million.
• C)increases by $3 million.
• D)decreases by $15 million.
• E)increases by $5 million.

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