What Is the Effect When There Is an Equal and Simultaneous

question 3

Multiple Choice

What is the effect when there is an equal and simultaneous increase in G and T ?

• A) An increase in output.
• B) A decrease in investment.
• C) No change in output.
• D) A decrease in output.
• E) An increase in investment.

---

Definitions:

Unrealized Gains

Profits that have been made on paper through investments but have not yet been realized through the sale of those assets.

Common Stock

A type of ownership in a corporation, typically with voting rights and participation in dividends.

Retained Earnings

The portion of a company's profits that is kept or retained rather than distributed to shareholders or used for investment.

Other Revenues and Gains

Accounts that record income from activities that are not part of a business's core operations.