If a $500 billion increase in investment spending increases income by $500 billion in the first round of the multiplier process and by $450 in the second round, income will eventually increase by:
A)$2500 billion.
B. $3000 billion.
C. $4000 billion.
D. $5000 billion.
Answer:D
If a $500 billion increase in investment spending increases income by $500 billion in the first round of the multiplier process and by $450 in the second round, income will eventually increase by:
A)$2500 billion. B. $3000 billion. C. $4000 billion. D. $5000 billion.