The Multiplier Is 5 And,as a Result of a Change

question 177

Multiple Choice

The multiplier is 5 and,as a result of a change in expenditure,equilibrium expenditure and real GDP change by $200 billion.What was the initial change in autonomous expenditure?

• A)$20 billion
• B)$40 billion
• C)$200 billion
• D)$1,000 billion
• E)$50 billion