If the Multiplier Is 4

question 376

Multiple Choice

If the multiplier is 4.0 and investment decreases by $2.5 billion, the AD curve

• A) shifts leftward by more than $30 billion.
• B) shifts leftward by $10 billion.
• C) shifts rightward by $10 billion.
• D) shifts rightward by less than $10 billion.

---

Definitions:

Compounded Quarterly

Describes the process of adding interest to the principal sum of a deposit or loan, with this addition of interest occurring four times a year.

Quarterly

Occurring every three months or four times a year, often used in reference to financial reports or payments.

Interest Rate

The proportion of a loan or savings amount paid as interest to the lender or paid to the saver, usually expressed as an annual percentage.

Compensation Strategy

A company’s plan or approach towards designing and implementing payment structures and benefits for its employees.