At Equilibrium, If Spending Increases by $300 and the Corresponding

question 257

Multiple Choice

At equilibrium, if spending increases by $300 and the corresponding increase in income is $1,500, what is the multiplier?

• A) 0.2
• B) 5
• C) 0.8
• D) 1

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Definitions:

Arouse Enthusiasm

The act of generating excitement, motivation, or keen interest in individuals or groups towards a certain activity, goal, or subject.

Vroom-Jago Leader-Participation Model

A leadership theory that suggests the effectiveness of a decision-making process is influenced by the leader's involvement and the participation of subordinates.

Shares the Problem

A collaborative approach to problem-solving where team members or stakeholders work together to identify, analyze, and solve issues.

Delegate Option

The process of assigning responsibility and authority to others to complete a clearly defined and agreed upon task while retaining ultimate responsibility for its success.