If the multiplier is 2 and investment increases by $10 billion, which of the following events occurs?
The AD curve shifts

Question

If the multiplier is 2 and investment increases by $10 billion, which of the following events occurs? 
 The  AD  curve shifts

Accepted Answer

rightward by the horizontal distance $20 billion.

Answer

upward by a vertical distance less than $20 billion.

Answer

upward by a vertical distance equal to $20 billion.

Answer

rightward by a horizontal distance greater than $20 billion.

Answer

rightward by a horizontal distance less than $20 billion.

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