If the Multiplier Is 3,a $20 Billion Increase in Autonomous

question 119

Multiple Choice

If the multiplier is 3,a $20 billion increase in autonomous consumption will cause a

• A)$20 billion increase in equilibrium consumption
• B)$60 billion increase in equilibrium consumption
• C)$20 billion increase in equilibrium real GDP demanded
• D)$60 billion increase in equilibrium real GDP demanded
• E)$60 billion decrease in autonomous saving

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