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vellojo vellojo
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7 years ago
In 2007, investment in France increased by 7 billion euros.  Assume the price level was constant, the multiplier was 5 and the economy was at full employment.  As a result, equilibrium expenditure
A) increased by 35 billion euros.
B) decreased by 35 billion euros.
C) increased by  1.4 billion euros
D) decreased by .71 billion euros.
Textbook 
Foundations of Macroeconomics

Foundations of Macroeconomics


Edition: 8th
Authors:
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Studying economics @ Edinburgh U
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amishamish
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#1
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7 years ago
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vellojo Author
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#2
7 years ago
Thank you for this

Comes at the right time too!

Good luck on your exams
Studying economics @ Edinburgh U
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