When Investment Increases, the Expenditure Multiplier Points Out That

question 209

Multiple Choice

When investment increases, the expenditure multiplier points out that

• A) consumption decreases by a greater amount.
• B) real GDP increases by a greater amount.
• C) consumption increases by the same amount.
• D) real GDP decreases by a greater amount.
• E) ultimately investment increases by more than the initial increase.

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