When the Multiplier Is _{--------------------} , an Autonomous Decrease in Investment

question 14

Multiple Choice

When the multiplier is _{--------------------} , an autonomous decrease in investment of $200 billion decreases equilibrium real GDP by $400 billion. When the multiplier is _{--------------------} , an autonomous decrease in
Investment of $200 billion decreases equilibrium real GDP by $800 billion.

• A)0.4; 0.2
• B)2.0; 4.0
• C)4.0; 8.0
• D)$400 billion; $800 billion
• E)0.2; 0.4