If a $200 Billion Increase in Investment Spending Creates $200

question 216

Multiple Choice

If a $200 billion increase in investment spending creates $200 billion of new income in the first round of the multiplier process and $160 billion in the second round, the multiplier in the economy is

• A)4.
• B)5.
• C)3.33.
• D)2.5.

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Definitions:

Service Organizations

Businesses that provide intangible products or services and typically create value for customers through service delivery.

Job Order Cost System

An accounting system that accumulates costs for each individual job, used in production or services when products or services are distinct and made to order.

Client Engagement

The interaction and relationship between a service provider or business and its clients, often aiming at long-term cooperation.

Lawyer Time

The hours or time spent by a lawyer or legal professional in providing legal services to clients, which is often billed on an hourly basis.