The Multiplier Is 2

question 375

Multiple Choice

The multiplier is 2.5 and the SAS curve is upward sloping. Investment increases by $20 billion. In the short run, equilibrium real GDP will

• A) increase by $50 billion.
• B) increase by less than $50 billion.
• C) decrease by less than $50 billion.
• D) decrease by $50 billion.

Distinguish between current and quick ratios in evaluating company liquidity.

Understand the impact of trade discounts, sales discounts, returns, and allowances on financial performance.

Understand the specific accounting standards applicable to various types of health care entities.

Identify the requirements for reporting donations and how they impact the Statement of Activities.

---

Definitions:

Federal Reserve Board

The governing body of the Federal Reserve System, responsible for overseeing the United States' central banking system.

Nation's Economy

The overall economic system of a country, encompassing all activities related to production, consumption, and trade of goods and services within the country.

President

The elected head of a republican state or a leader of an organization, company, or institution, possessing varying levels of authority and responsibility based on context.

Federal Budget Deficit

The financial shortfall when the U.S. government's expenditures exceed its revenues within a fiscal year, leading to borrowing to cover the gap.