10. The multiplier is 2.0 and, because of an increase in expected future profit, firms increase their
investment by $10 billion. As long as the SAS curve is not horizontal, in the short run,
equilibrium real GDP will
Select one:
A. be unaffected
B. increase by less than $20 billion.
C. increase by more than $20 billion.
D. increase by $20 billion.
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