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Assume there is no government or foreign sector. If the multiplier is 5, a $4 billion increase in ...

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RODY.ELKHALIL:
Question 1Assume there is no government or foreign sector. If the 
MPS is 0.10, a $20 billion decrease in planned investment will cause aggregate output to decrease by
◦ $20 billion.
◦ $50 billion.
◦ $100 billion.
◦ $200 billion.

Question 2Assume there is no government or foreign sector. If the multiplier is 5, a $4 billion increase in investment will cause aggregate output to increase by
◦ $125 billion.
◦ $80 billion.
◦ $50 billion.
◦ $20 billion.

emily12345:
Answer 1$200 billion.

Answer 2$20 billion.

Ngọc Nhi:
thank you for your answer

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