Suppose That Investment Increases by $10 Billion

question 81

Multiple Choice

Suppose that investment increases by $10 billion. If the multiplier is 2, the AD curve

• A)shifts rightward by the horizontal distance $20 billion.
• B)shifts rightward by a horizontal distance greater than $20 billion.
• C)shifts rightward by a horizontal distance less than $20 billion.
• D)is not affected.
• E)shifts upward by a vertical distance equal to $20 billion.

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Definitions:

Orangutans

Great apes native to Indonesia and Malaysia, known for their intelligence, long arms, and reddish-brown hair.

Arrested Physical Development

A condition or phase where the normal growth and development of the body is halted or significantly slowed.

Reproduction Rate

The average number of offspring produced by an individual or population over a given time period.

Wild Bonobos

A species of great ape known for their matriarchal societies and complex social behaviors, residing in the Democratic Republic of the Congo.