FIGURE 23-5 Refer to Figure 23-5

question 65

Multiple Choice

FIGURE 23-5 Refer to Figure 23-5.Suppose that an increase in government purchases caused the AD curve to shift to the right,as shown.If the simple multiplier in this model is 5,then how much was the increase in government purchases?

• A)30
• B)40
• C)50
• D)12
• E)not enough information to know

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Definitions:

Dissident Shareholders

Shareholders who disagree with the company management's policies or decisions, often attempting to prompt change within the company.

Capital Providers

Individuals or institutions that lend money or invest in businesses with the expectation of receiving a return on their capital.

Bargaining Power

The ability of a party to exert influence over another party in negotiations to obtain favorable terms.

Financial Statements

Financial statements are formal records of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.