If a $500 Billion Increase in Investment Spending Increases Income

question 111

Multiple Choice

If a $500 billion increase in investment spending increases income by $500 billion in the first round of the multiplier process and by $450 in the second round, income will eventually increase by

• A)$2,500 billion.
• B)$3,000 billion.
• C)$4,000 billion.
• D)$5,000 billion.

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Definitions:

Method Of Equal Alternatives

A problem-solving technique that involves systematically comparing different solutions or options.

Intuitive Judgment

The ability to understand or make decisions based on a direct perception of truth, independent of any reasoning process.

Conjunction

In logic and grammar, it refers to the combination of two statements or clauses linked in such a way that both must be true for the combined statement to be true.

Chess Set

A collection of 32 chess pieces, including kings, queens, bishops, knights, rooks, and pawns, used in the game of chess along with a chessboard.