If the multiplier is 4.0 and investment decreases by $2.5 billion, the AD curve
A. shifts rightward by $10 billion.
B. shifts rightward by less than $10 billion.
C. shifts leftward by $10 billion.
D. shifts leftward by more than $30 billion.
Answer:C
If the multiplier is 4.0 and investment decreases by $2.5 billion, the AD curve
A. shifts rightward by $10 billion. B. shifts rightward by less than $10 billion. C. shifts leftward by $10 billion. D. shifts leftward by more than $30 billion.