The multiplier means that an increase in investment results in ...

[ghost!]

The multiplier means that an increase in investment results in ________ aggregate expenditure that is ________ the increase in investment.
 
  A) increased; the same size as
  B) increased; smaller than
  C) decreased; larger than
  D) decreased; smaller than
  E) increased; larger than

Question 2

Holding everything else constant, the U.S. real exchange with Australia will increase if inflation is higher in the United States than in Australia.
 
  Indicate whether the statement is true or false

[mochi09]

Answer to Question 1

E

Answer to Question 2

TRUE

[ghost!]

Excellent

[adammoses97]

Thanks for the timely response, appreciate it