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

question 236

Multiple Choice

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

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