Use the Following Information Below to Answer the Following Question(s)

question 9

Multiple Choice

Use the following information below to answer the following question(s) : C = 800 + 0.65YD
I = 750
G = 1500
T = 900
-Refer to the information above. Which of the following events would cause an increase in the size of the multiplier?

• A) An increase in the propensity to save.
• B) A reduction in taxes.
• C) An increase in investment.
• D) A reduction in government spending.
• E) An increase in the propensity to consume.

---

Definitions:

Federal Trade Commission Act

A United States law established in 1914 to promote consumer protection and eliminate and prevent anticompetitive business practices.

Clayton Act

A U.S. antitrust law, enacted in 1914, aimed at preventing unfair business practices such as price discrimination, exclusive dealings, and mergers that significantly lessen competition.

Tying Contract

A type of agreement where the buyer is required to purchase a secondary product along with the primary product, often enforced by the seller.

Antitrust Question

Concerns issues related to laws and regulations that prevent monopolies and promote competition in the market.