A Multiplier of 10 Means That a $100 Billion Increase

question 143

Multiple Choice

A multiplier of 10 means that a $100 billion increase in investment will

• A)increase equilibrium real GDP by $100 billion.
• B)decrease equilibrium real GDP by $1000 billion.
• C)increase equilibrium real GDP by $10 billion.
• D)increase equilibrium real GDP by $1000 billion.

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