If an increase in investment spending of $20 million results in a $200 million increase in equilibrium real GDP, then A. the multiplier is 10. B. the multiplier is .1. C. the multiplier is 100. D. the multiplier is 1.

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Chapter1: Making Economics Decisions
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1. If an increase in investment spending of $20 million results in a $200
million increase in equilibrium real GDP, then
A. the multiplier is 10.
B. the multiplier is .1.
C. the multiplier is 100.
D. the multiplier is 1.

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