Figure 9-5 ​

question 32

Multiple Choice

Figure 9-5
​
-In Figure 9-5, if the second round effect of an increase in autonomous spending of $100,000 is $75,000, then the multiplier is

• A)400,000.
• B)6.
• C)4.
• D)4/5.

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Definitions:

Par Value

The nominal value of a bond or stock as declared by the issuer, which may not reflect its actual market value.

Cumulative

Refers to the total amount accumulated over a period of time or the aggregate of elements collected.

Depreciation Expense

Distributing the expense of a physical asset throughout its lifespan.

Cost of Goods Sold

The total cost of manufacturing or acquiring the products that were sold during a given period.