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:

Accounts

Records or statements of financial transactions, reflecting the financial activities of a person or organization.

Negotiable

A term describing an instrument, such as a check or bill of exchange, that can be transferred from one person to another in a manner that the holder in due course acquires a good title.

Handwriting

The act or skill of writing by hand; also refers to an individual's unique style of writing.

Merchants

Individuals or businesses engaged in the trade of goods, services, or commodities for profit.