Suppose the Economy's Multiplier Is 2

question 200

Multiple Choice

Suppose the economy's multiplier is 2.Other things equal, a $25 billion decrease in government expenditures on national defence will cause equilibrium GDP to:

• A)decrease by $50 billion.
• B)decrease by $150 billion.
• C)remain unchanged since spending on military goods is unproductive and usually wasteful.
• D)decrease by $25 billion.

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Definitions:

Intercultural Communication

The process of exchanging meaningful and unambiguous information across cultural boundaries.

Perspectives

Different viewpoints or angles from which a situation, concept, or problem can be considered or analyzed.

High-Context Cultures

Cultures in which communication relies heavily on the context and non-verbal cues rather than solely on explicit words.

Low-Context Cultures

Cultures in which communication is expected to be explicit and direct, with less reliance on context, non-verbal cues, and background knowledge to convey meaning.