Homework - Answered An increase in autonomous investment spending will likely cause Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a an equivalent increase in equilibrium GDP. Your answer b a multiplied increase in equilibrium GDP due to the spending multiplier. c a smaller increase in equilibrium GDP since the marginal propensity to consume is less than 1. d no effect on equilibrium GDP since investment spending is independent of income in the income expenditure model. Answered - Incorrect
