because of the multiplier effect, a relatively small change in planned investment can trigger a much larger…

because of the multiplier effect, a relatively small change in planned investment can trigger a much larger change in equilibrium real gdp per year. a. false b. true

because of the multiplier effect, a relatively small change in planned investment can trigger a much larger change in equilibrium real gdp per year. a. false b. true

Answer

Brief Explanations:

The multiplier effect in economics states that a change in autonomous spending (such as planned investment) leads to a larger - than - proportionate change in equilibrium real GDP. So, a relatively small change in planned investment can trigger a much larger change in equilibrium real GDP.

Answer:

B. True