Assume That People Experience a One-Time 50 Unit Increase in Their

question 48

Multiple Choice

Assume that people experience a one-time 50 unit increase in their consumption .In this case

• A)equilibrium income will rise by 50 units times the investment multiplier.
• B)equilibrium income will rise by 50 units.
• C)equilibrium income will rise by 50 units times the tax multiplier.
• D)equilibrium income will not change because this increase is temporary.

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Definitions:

Merchandise Purchased

Goods acquired for resale by a retailer or wholesaler, recorded as an expense when sold.

Credit Terms

Credit terms are the payment conditions set by a seller, detailing the period during which a buyer must pay for purchased goods or services.

Discount Period

The time frame between the start date of a sale and its expiration, during which goods or services are offered at reduced prices.

Purchase Allowances

A reduction in the purchase price, allowed by the seller to the buyer, often due to minor defects or quality issues in the goods.