When the multiplier is ________, an autonomous decrease in ...

[mspears3]

When the multiplier is ________, an autonomous decrease in investment of 200 billion decreases equilibrium real GDP by 400 billion.
 
  When the multiplier is ________, an autonomous decrease in investment of 200 billion decreases equilibrium real GDP by 800 billion.
  A) 2.0; 4.0
  B) 0.4; 0.2
  C) 0.2; 0.4
  D) 4.0; 8.0
  E) 400 billion; 800 billion

Question 2

The demand for money curve is shown in the figure above. A movement from point B to point C could be the result of
 
  A) a rise in the real interest rate.
  B) an increase in the quantity of money held by banks.
  C) a fall in the nominal interest rate.
  D) a rise in the real interest rate matched by an equal fall in the nominal interest rate.
  E) a decrease in the total benefit from holding money.

[jesse.fleming]

Answer to Question 1

A

Answer to Question 2

C

[mspears3]

Excellent

[smrtceo]

Gracias!