In the country of Guadelope, in 2019 GDP increased by $8 million. In the same year, the level of investment in the country was $2 million. What is the multiplier? Select one: a. 6. b. 5. c. 4. d. 1/4.

In the country of Guadelope, in 2019 GDP increased by $8 million. In the same year, the level of investment in the country was $2 million. What is the multiplier? Select one: a. 6. b. 5. c. 4. d. 1/4.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section11.A: Graphical Treatment Of Taxes And Fiscal Policy

Problem 2DQ

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Question

In the country of Guadelope, in 2019 GDP increased by $8 million. In the same year, the level of
investment in the country was $2 million. What is the multiplier?
Select one:
O a. 6.
O b. 5.
c. 4.
d. 1/4.

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