Answer Happy

Question 8 Suppose the government spending multiplier is 1.5. This means that A a $1 decline in government spending will raise Real GDP by $1.50. B a $1 rise in government spending will raise both total spending and Real GDP (assuming prices are constant) by $1.50. a $1 rise in government spending will raise investment spending by $1.50. 0.25 Points (D a $1 rise in government spending will change interest rates by 1.50 times what it was before the $1 rise in government spending. E none of the above