if investment increases by $100 and, as a result, GDP ultimately increases by $200, the multiplier equals?
To determine the multiplier in this scenario, we need to divide the change in GDP by the change in investment.
The formula for the multiplier is:
Multiplier = Change in GDP / Change in Investment
In this case, the change in GDP is $200 and the change in investment is $100.
Therefore, the multiplier would be:
Multiplier = $200 / $100
= 2
So, the multiplier in this scenario is 2.
To calculate the multiplier, you can use the following formula:
Multiplier = Change in GDP / Change in Investment
In this case, the change in investment is $100 and the change in GDP is $200.
Multiplier = $200 / $100
Multiplier = 2
Therefore, the multiplier in this scenario is 2.