Author Question: If the multiplier is 4, equilibrium real GDP is 600 billion, and investment is 25 billion, what will ... (Read 115 times)

LCritchfi · **on:** Jun 30, 2018

If the multiplier is 4, equilibrium real GDP is 600 billion, and investment is 25 billion, what will happen if investment increases to 30 billion? Real GDP will:
a. increase to 605 billion
b. decrease to 595 billion
c. increase to 620 billion
d. increase to 624 billion
e. decrease to 580 billion

Question 2

Which of the following types of financial institutions is required to belong to the Federal Reserve System?
a. National banks.
b. State-chartered banks.
c. Savings and loan institutions.
d. Credit unions.