(Solved): The following diagram depicts the change in the aggregate goods market equilibrium when there is a ...

The following diagram depicts the change in the aggregate goods market equilibrium when there is a \( € 2 \) billion increase in investment. The economy's marginal propensity to consume is \( 0.5 \). Choose the correct answer. a. The new goods market equilibrium after the investment increase is \( \mathrm{E} \). b. The distance between \( \mathrm{C} \) and \( \mathrm{D} \) is three-quarters the distance between \( \mathrm{A} \) and \( \mathrm{B} \) (€1.5 billion). c. The multiplier is 2 . d. Aggregate demand increases by a total of \( € 2 \) billion \( \times 0.5=€ 1 \) billion due to the increase in investment