If the Multiplier Is 4, a $10 Billion Increase in Investment

question 26

Multiple Choice

If the multiplier is 4, a $10 billion increase in investment will cause aggregate output to increase by:

• A) $60 billion
• B) $40 billion
• C) $50 billion
• D) $10 billion

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Definitions:

Power-hungry

Describes an individual or entity that has an overwhelming desire for control or dominion over others.

Age Stereotyping

Preconceived and oversimplified beliefs about the abilities, characteristics, and behaviors of individuals based solely on their age.

Appearance

The way in which an individual or object looks to others, encompassing physical characteristics and attire.

Forgetfulness

The inability to remember information or experiences, which can be a normal part of aging or related to various health conditions.