The multiplier principle indicates that if business decision makers become more optimistic about the future and, as a result, increase their
investment expenditures by $82 billion, real GDP
Oa. will increase by less than $82 billion if the economy was initially operating well below capacity.
b. will increase by more than $82 billion if the economy was initially operating well below capacity.
Oc. will increase by more than $82 billion if the economy was initially operating at full-employment capacity.
Od. will decline if the marginal propensity to consume is less than 1.