If an increase of $5 billion in investment is associated with an increase of $25 billion in real Gross Domestic Product (GDP), the multiplier is
A)1.
B)3.
C)5.
D)7.

Name: If an increase of $5 billion in investment is associated with an increase of $25 billion in real Gross Domestic Product (GDP), the multiplier is A)1. B)3. C)5. D)7.
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Quizplus · Accepted Answer

The multiplier is calculated as the change in GDP divided by the change in investment. Here, $25 billion / $5 billion = 5.

If an Increase of $5 Billion in Investment Is Associated