If Investment Increases by $100 And,as a Result,gross Domestic Product

question 139

Multiple Choice

If investment increases by $100 and,as a result,gross domestic product (GDP) ultimately increases by $200,the multiplier equals _____.

• A)1
• B)2
• C)3
• D)4
• E)5

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Definitions:

Decision-Making Authority

The power or right vested in an individual or group to make important decisions that affect the course of an organization or project.

Campaign Financing

The practice of raising and spending money to fund political campaigns, which is regulated by laws and practices varying significantly between jurisdictions.

Supreme Court

The highest judicial body in a country, often having the final say in legal disputes and the interpretation of laws.

Business Cycle

The fluctuations in economic activity that an economy experiences over a period of time, marked by phases of expansion and contraction.