If the Government Spending Multiplier Is 6 and Government Spending

question 178

Multiple Choice

If the government spending multiplier is 6 and government spending increases by $30 billion, output will ________ by $________ billion.

• A) increase; 180
• B) decrease; 180
• C) increase; 5
• D) decrease; 5

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Definitions:

Bribes

Payments made to influence someone's decisions or actions in favor of the payer, typically considered illegal or unethical.

Rent Control

A government policy that sets a maximum price (a rent ceiling) landlords can charge tenants, intended to make housing more affordable.

Landlords

Property owners who rent out real estate to tenants for a periodic payment, usually monthly.

Quality of Housing

A measure of the condition, facilities, and attributes of housing units, which affects the well-being and satisfaction of residents.