If an increase of $10 billion of investment results in an increase in equilibrium expenditure of $40 billion, the multiplier equals
A) $10 billion ÷ $40 billion = 0.25.
B) $40 billion - $10 billion = $30 billion.
C) $10 billion × $40 billion = $400 billion.
D) $10 billion - $40 billion = -$30 billion.
E) $40 billion ÷ $10 billion = 4.
E
Economics
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Refer to Table 9-11. If the actual terms of trade are 1 hat for 1.8 clocks and 150 hats are traded, how many hats will Denmark gain compared to the "without trade" numbers?
A) -150 B) 0 C) 150 D) 1,050
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