When the Multiplier Is ________ , an Autonomous Decrease in Investment

question 290

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

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