Refer to the Information Provided in Figure 24

question 10

Multiple Choice

Refer to the information provided in Figure 24.5 below to answer the question(s) that follow. Figure 24.5
-Refer to Figure 24.5. The government spending multiplier equals ________ and the tax multiplier equals ________.

• A) 2.5; -1.5
• B) 4; -3
• C) 5; -4
• D) 9; -8

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Definitions:

Anticipated Cash Outflow

The expected amount of money to be spent in the future for expenses, purchases, or investments.

Compounded Quarterly

Interest calculation method where the earned interest is added to the principal at the end of each quarter, then new interest is calculated on the new total.

Interest

The cost of borrowing money or the earnings from lending money, paid as a percentage over a period of time.

Account

A record used to keep track of and manage financial transactions within a financial institution, company, or another entity.