When the Multiplier Is ________, an Autonomous Decrease in Investment

question 2

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

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Sales representatives who generate sales by promoting the firm and encouraging demand for its products.

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