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

---

Definitions:

Business Model

A conceptual structure that supports the viability of a business and explains how it operates, makes money, and delivers value to stakeholders.

New Venture

The act of embarking on a new business endeavor that typically involves risk and innovation.

Value

The importance, worth, or usefulness of something to a consumer, often reflected in their willingness to pay for a product or service.

Technological Component

Refers to the technical elements or aspects in a system, product, or process, often involving hardware, software, or both.