Answer to Question #215999 in Economics for Andies

Question #215999

If the multiplier is 4, a R40 billion increase in net exports will …

[1] increase GDP by 160 billion

[2] increase GDP by 40 billion

[3] increase GDP by 10 billion

[4] the multiplier does not have an effect on net exports

Expert's answer

1] increase GDP by 160 billion

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