ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Can someone please explain this to me?

If the spending multiplier is 2, an increase of autonomous spending by 10 will increase equilibrium spending and income by
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.
a
b
Question 2 Spending
Review
с
d
2
10
5
20
Correct Answer:
d - 20
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Transcribed Image Text:If the spending multiplier is 2, an increase of autonomous spending by 10 will increase equilibrium spending and income by Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a b Question 2 Spending Review с d 2 10 5 20 Correct Answer: d - 20
Expert Solution
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Step 1

The spending multiplier is defined as the ratio of the change in GDP to the change in autonomous expenditure.

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