Skip to main content
Macroeconomics
My Course
Learn
Exam Prep
AI Tutor
Study Guides
Flashcards
Explore
My Course
Learn
Exam Prep
AI Tutor
Study Guides
Flashcards
Explore
Back
Multiplier Effect of Investment Spending
Download worksheet
Problem 1
Problem 2
Problem 3
Problem 4
Problem 5
Problem 6
Problem 7
Problem 8
Problem 9
Problem 10
Multiplier Effect of Investment Spending
Download worksheet
Practice
Summary
1 of 10
Next
14. Income and Consumption / Multiplier Effect of Investment Spending / Problem 1
Problem 1
If the MPC is 0.85 and the initial investment is \$5 billion, what is the resulting increase in GDP?
A
\$25 billion
B
\$15 billion
C
\$20 billion
D
\$33.33 billion
AI tutor
0
Show Answer