The Following Information Is for a Closed Economy: Refer

question 21

Multiple Choice

The following information is for a closed economy: Refer to the above information.The introduction of $80 billion of government spending has:

• A)lowered the multiplier from 2.5 to 2.0.
• B)increased the multiplier from 2.5 to 3.0.
• C)increased the multiplier from 2.0 to 2.5.
• D)had no effect on the size of the multiplier.

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Definitions:

Picky Eating

A selective eating behavior characterized by the refusal to eat certain foods or a limited range of food preferences.

Synaptic Pruning

The process by which extra neurons and synaptic connections are eliminated in the brain to increase the efficiency of neuronal transmissions.

Neurons

Specialized neurons in the nervous system that communicate information via electrical and chemical signals.

Complex Communication

The exchange of information that involves multiple layers of meaning and requires higher levels of understanding and interpretation.