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The following information is for a closed economy: GDP C S Ig $100 $100 $0 $80 200 160 40 80 300 220 80 80 400

The following information is for a closed economy: GDP C S Ig $100 $100 $0 $80 200 160 40 80 300 220 80 80 400 280 120 80 500 340 160 80 600 400 200 80 700 460 240 80 Refer to the above information. The introduction of $80 billion of government spending has: Multiple Choice lowered the multiplier from 2.5 to 2.0. had no effect on the size of the multiplier. increased the multiplier from 2.5 to 3.0. increased the multiplier from 2.0 to 2.5

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