If the Multiplier Is 6 and Exports Decrease by $30

question 287

Multiple Choice

If the multiplier is 6 and exports decrease by $30, what impact will that have on aggregate expenditure?

• A) increase by $180
• B) decrease by $180
• C) increase by $30
• D) decrease by $30

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Definitions:

Return on Equity

A financial ratio that measures the profitability of a business in relation to shareholders' equity.

Profit Margin

A financial ratio that shows the percentage of revenue remaining after all operating expenses, interest, taxes, and dividends have been deducted.

Return on Assets

A financial ratio indicating how efficiently a company is using its assets to generate earnings.

Return on Assets

A financial ratio indicating how profitable a company is relative to its total assets, measuring the efficiency of asset use in generating profit.