In the Short Run with Fixed Prices, an Increase in Investment

question 317

Multiple Choice

In the short run with fixed prices, an increase in investment of $100 billion

• A) increases real GDP by $100 billion.
• B) increases real GDP by less than $100 billion.
• C) increases real GDP by more than $100 billion.
• D) decreases real GDP by $100 billion because of the decrease in induced expenditures.