Suppose Government Purchases Increase by $100 Million in an Economy,which

question 33

Multiple Choice

Suppose government purchases increase by $100 million in an economy,which leads to total output increasing by $500 million.The size of the multiplier is _____.

• A)$400
• B)5
• C)$500
• D)0.5
• E)50

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Definitions:

Marketing Concept

A business philosophy that focuses on identifying and meeting the needs and wants of customers as the key to achieving profitability.

Environmental Forces

External factors that affect a company's ability to operate, including economic, political, social, technological, and environmental issues.

Marketing Opportunities

Potential areas where a company can generate increased demand for its products or services, often leading to business growth and expansion.

Customer Value

The satisfaction a customer experiences or expects to experience by taking a given action relative to the cost of that action.