What is the law of one price?
What will be an ideal response?
Question 2
If an increase of 10 billion of investment results in an increase in equilibrium expenditure of 40 billion, the multiplier equals
A) 10 billion 40 billion = 0.25.
B) 40 billion - 10 billion = 30 billion.
C) 10 billion 40 billion = 400 billion.
D) 10 billion - 40 billion = -30 billion.
E) 40 billion 10 billion = 4.