If Businesses Spend an Additional $150 Billion for Investment Projects

question 46

Multiple Choice

If businesses spend an additional $150 billion for investment projects in 2010, what will be the impact on national income (Y) if the multiplier is 2?

• A)Y will increase by $50 billion.
• B)Y will increase by $150 billion.
• C)Y will increase by $300 billion.
• D)Y will increase by $450 billion.

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Definitions:

Howard Schultz

An American businessman best known for expanding Starbucks into a global coffee chain during his time as CEO and chairman.

Employee Welfare

Refers to the overall well-being and satisfaction of employees within an organization, encompassing physical, mental, and emotional health, as well as workplace safety and benefits.

American Coffee Chain

A retail business model that operates stores across the United States, serving coffee and related products.

Sales Revenue

The gross income earned from the sales of goods or services before removing any expenditures.