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Author Question: If an increase in investment spending of 50 million results in a 400 million increase in equilibrium ... (Read 505 times)

sheilaspns

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on: Jun 29, 2018
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


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guyanai

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Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

B


sheilaspns

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

mochi09

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Reply 3 on: Yesterday
Excellent

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