If an increase in investment of $100 billion generates an increase of $500 billion in real GDP, the multiplier is

a. 20.
b. 50.
c. 1.50.
d. 5.00.


d

Economics

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If you use $500 of currency to make a deposit in a saving deposit

A) M1 decreases, but M2 is unchanged. B) M1 decreases and M2 increases. C) M1 is unchanged, but M2 increases. D) M1 and M2 both increase.

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Distinguish between macroeconomics and microeconomics

What will be an ideal response?

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The cross-price elasticity of two goods is 2. This tells us the two goods are:

A. substitutes. B. complements. C. unrelated. D. inelastic.

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