The Software and Related Services Sector Has a Multiplier Effect

question 217

Multiple Choice

The software and related services sector has a multiplier effect on the Indian economy with every one- rupee input spent by the" information technology sector" producing an increase in real GDP by rupees.
HYPERLINK "http://www.ft.com/" www.ft.com, 2/28/20
According to the story, if _ _ in the software and related services sector increases by $15 billio GDP will increase by .

• A) consumption; $30 billion.
• B) consumption; $2 billion.
• C) investment; $30 billion.
• D) investment; $2 billion.

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Definitions:

Electricity Generating Plants

Facilities that convert various forms of energy into electrical power, such as coal, natural gas, nuclear, solar, or wind energy.

Fixed Costs

Costs that do not change with the level of output produced, such as rent or salaries.

Operating Costs

Costs associated with the day-to-day running of a business, including rent, utilities, payroll, and raw materials, but excluding capital expenditures and debt service.

U.S. Electricity

Refers to the production, distribution, and consumption of electrical power within the United States.