Suppose the Government Embarks on an Infrastructure Program,spending $8 Billion

question 91

Multiple Choice

Suppose the government embarks on an infrastructure program,spending $8 billion on the construction of new roads and bridges.What is the size of the multiplier if the AS curve is vertical?

• A)0
• B)greater than 1
• C)less than 1
• D)infinity
• E)insufficient information to solve

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Definitions:

Anxiety

A mental health disorder characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one's daily activities.

Depression

A mental health disorder characterized by persistently low mood, loss of interest in activities, and a variety of emotional and physical problems.

Abnormal Psychology

The branch of psychology that studies unusual patterns of behavior, emotion, and thought, which may or may not be understood as precipitating a mental disorder.

Theoretical Understanding

A comprehensive insight or knowledge about a specific theory, allowing for the prediction and explanation of phenomena in the related field.