If an Increase in Government Spending of 40 Units Accompanied

question 43

Multiple Choice

If an increase in government spending of 40 units accompanied by an equal increase in taxes caused equilibrium income to rise by 40 units,the autonomous expenditure multiplier must be

• A)10.
• B)1.
• C)4.
• D)not enough information is given to calculate the multiplier.

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Definitions:

Revolving Armature

An armature that rotates within a magnetic field in a generator or motor, converting electrical energy to mechanical energy, or vice versa.

Power Output

The total amount of power, usually measured in watts, that a device can produce or supply.

Induced Voltage

The voltage generated in a conductor or coil due to a changing magnetic field according to Faraday's law of electromagnetic induction.

Field Discharge Resistor

A resistor used to safely discharge stored energy from the field winding of a motor or generator during shutdown.