Suppose That an Increase in Government Purchases of $100 Million

question 159

Multiple Choice

Suppose that an increase in government purchases of $100 million caused the aggregate demand curve to shift to the right by $350 million at each price level. What is the value of the multiplier?

• A) 2.5
• B) 3.5
• C) 0.285
• D) $250 million

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Definitions:

MDS

Multi-Dimensional Scaling, a statistical technique used for exploring similarities or differences in data, often applied in fields like psychology, marketing, and information science.

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Management Potential

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