In the short run with fixed prices, an increase in investment of $100 billion
A. increases real GDP by $100 billion.
B. increases real GDP by less than $100 billion.
C. increases real GDP by more than $100 billion.
D. decreases real GDP because of the decrease in induced expenditures.
Answer:C
In the short run with fixed prices, an increase in investment of $100 billion
A. increases real GDP by $100 billion. B. increases real GDP by less than $100 billion. C. increases real GDP by more than $100 billion. D. decreases real GDP because of the decrease in induced expenditures.