If an Economy Spends 90% of Any Increase in Real

question 67

Multiple Choice

If an economy spends 90% of any increase in real GDP, then an increase in autonomous investment of $1 billion would result ultimately in an increase in equilibrium real GDP of

• A) $1.0 billion.
• B) $1.9 billion.
• C) $10 billion.
• D) $100 billion.

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Definitions:

Gratitude

The quality of being thankful; readiness to show appreciation for and to return kindness.

Paranoid Personality Disorder

A mental condition characterized by paranoia and a widespread distrust and suspicion of others without adequate reason.

Neuroticism

A personality trait characterized by emotional instability, anxiety, moodiness, worry, and sadness.

Agreeableness

A personality trait characterized by kindness, empathy, and a cooperative attitude.