If the multiplier is 4 and there are no taxes, and government spending increases by $100 billion, real gdp will:

1 answer:

6 0

If the multiplier is 4 and there are no taxes, and government spending increases by $100 billion, real gap will increase by $400 billion.

To solve:
Take the multiplier and multiply it by the $100 billion.
($100 billion)(4) = $400 billion

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