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To calculate the overall increase in output or income given a multiplier of 4 and a $10 billion increase in autonomous investment, you can use the following formula:
Increase in output or income = Multiplier × Autonomous investment
In this case, the multiplier is 4 and the autonomous investment is $10 billion. So, the calculation would be:
Increase in output or income = 4 × $10 billion
To find the answer, multiply 4 by $10 billion:
Increase in output or income = $40 billion
Therefore, a $10 billion increase in autonomous investment with a multiplier of 4 would result in a $40 billion overall increase in output or income.