An Initial Increase in Government Spending of $100 Billion Can

question 35

Multiple Choice

An initial increase in government spending of $100 billion can create more than $100 billion through what economists call a(n) ________ effect.

• A) multiplier
• B) enhancement
• C) interest rate
• D) aggregate supply
• E) wealth

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Definitions:

Parking Lot

An outdoor area or a structure designated for parking vehicles.

Title Fees

Fees associated with the transfer of ownership or establishing the title of a property, often incurred during buying or selling.

Property, Plant, Equipment

Tangible long-term assets used in the operation of a business, such as buildings and machinery.

Automobile Dealership

A business that sells new or used cars at the retail level, typically based on a dealership contract with an automaker or sales subsidiary.