If an Economy Spends 90% of Any Increase in Real

question 67

Multiple Choice

If an economy spends 90% of any increase in real GDP, then an increase in autonomous investment of $1 billion would result ultimately in an increase in equilibrium real GDP of

• A) $1.0 billion.
• B) $1.9 billion.
• C) $10 billion.
• D) $100 billion.

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Definitions:

Full Range

Denotes offering a complete or comprehensive selection of products, services, or options within a certain category.

Intensive Distribution

A distribution strategy aiming to cover as much of the market as possible by placing products in as many outlets as feasible.

Coca-Cola

A carbonated soft drink manufactured by The Coca-Cola Company, known for its widespread brand recognition and global distribution.

Exposure

The state of being exposed to contact with something, in marketing, it refers to the number of times a consumer encounters a brand or product.