If an increase in investment spending of $50 million by Amgen, a biomedical company, results in a $400 million increase in equilibrium real GDP, then what is the expenditure multiplier? Select one: a. the multiplier is 0.125. b. the multiplier is 3.5. c. the multiplier is 8. d. the multiplier is 50.
If an increase in investment spending of $50 million by Amgen, a biomedical company, results in a $400 million increase in equilibrium real GDP, then what is the expenditure multiplier? Select one: a. the multiplier is 0.125. b. the multiplier is 3.5. c. the multiplier is 8. d. the multiplier is 50.
Chapter9: Aggregate Demand
Section: Chapter Questions
Problem 5.12P
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If an increase in investment spending of $50 million by Amgen, a biomedical company, results in a $400 million increase in equilibrium real GDP , then what is the expenditure multiplier?
Select one:
a. the multiplier is 0.125.
b. the multiplier is 3.5.
c. the multiplier is 8.
d. the multiplier is 50.
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