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.

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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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.

Definition Video Definition Overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period. Video

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