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:

Egalitarian Family Pattern

A family structure in which both partners share equal authority and responsibility in decision-making, child-rearing, and domestic chores.

African American Families

Family units that are part of the African American community, often sharing a unique cultural and historical heritage.

Relational Bonding

The process of developing a close, interpersonal connection between individuals through shared experiences and emotional engagement.

American Indian Family

The family unit and social structures within Native American communities, which may include extended family and tribal affiliations.