In a Simple Macro Model with Government and Demand- Determined

question 22

Multiple Choice

In a simple macro model with government and demand- determined output, to raise equilibrium national income by $100 billion, G must be

• A)raised by $100 billion divided by the simple multiplier.
• B)raised by $100 billion times the simple multiplier.
• C)raised by $100 billion.
• D)lowered by $100 billion divided by the simple multiplier.
• E)lowered by $100 billion times the simple multiplier.

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Definitions:

IPO

Initial Public Offering, the process by which a private company becomes publicly traded on a stock exchange by offering its shares for sale to the public for the first time.

Subsidiary

A business that is either fully or partially owned and controlled by another entity, referred to as the parent company.

Tender Offer

A tender offer is a public, open offer or invitation (usually made by a company or investor) to all shareholders of a publicly traded corporation to tender their stock for sale at a specific price during a certain time period.

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership interests and rights such as receiving dividends and voting at shareholder meetings.