If the economy is in equilibrium at $1,000 billion national income and if the multiplier is 3 and intended investment is $400 billion, what happens to national income when intended investment decreases to $380 billion? It will
a. increase to $1,020 billion
b. increase to $1,060 billion
c. decrease to $980 billion
d. decrease to $940 billion
e. decrease to $970 billion
D
Economics
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