If a $500 Billion Increase in Investment Spending Increases Income

question 111

Multiple Choice

If a $500 billion increase in investment spending increases income by $500 billion in the first round of the multiplier process and by $450 in the second round, income will eventually increase by

• A)$2,500 billion.
• B)$3,000 billion.
• C)$4,000 billion.
• D)$5,000 billion.

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