If an increase in investment spending of 50 million results in a ...

[sheilaspns]

If an increase in investment spending of 50 million results in a 400 million increase in equilibrium real GDP, then
 
  A) the multiplier is 0.125. B) the multiplier is 3.5.
  C) the multiplier is 8. D) the multiplier is 50.

Question 2

Expansionary fiscal policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be ________ and real GDP to be ________.
 
  A) higher; lower B) higher; higher C) lower; lower D) lower; higher

[guyanai]

Answer to Question 1

C

Answer to Question 2

B

[sheilaspns]

Excellent

[6ana001]

Thanks for the timely response, appreciate it