Suppose the Government Expenditure Increases by $200 and the Simple

question 132

Multiple Choice

Suppose the government expenditure increases by $200 and the simple spending multiplier equals 5.The final increase in output will be:

• A)$6000.
• B)$500.
• C)$200.
• D)more than $200.
• E)less than $200.

---

Definitions:

Fourteenth Amendment

An amendment to the U.S. Constitution that grants citizenship to all persons born or naturalized in the United States and provides equal protection under the law.

Insider Trading Violation

Illegal trading of a public company's stock or other securities by individuals with access to non-public, material information about the company.

Nonpublic Information

Information that is not available to the general public, often insider or confidential information that could influence decisions if released.

Tipped Information

Insider information that has been unofficially disclosed to someone who is not authorized to have it.