An Increase in Investment Can Lead to a Greater Increase

question 40

Multiple Choice

An increase in investment can lead to a greater increase in aggregate demand if the value of the spending multiplier is:

• A)greater than 1.
• B)less than 1 but more than zero.
• C)negative.
• D)exactly equal to zero.
• E)exactly equal to one.

---

Definitions:

Ordered Rankings

A method of arranging data points or items based on their value or importance in an ascending or descending sequence.

Interval Data

A type of numerical data that has meaningful intervals between measurements but no true zero point, allowing for comparison and subtraction.

Nominal Data

Data categorized into discrete groups or categories that cannot be ordered or ranked.

Interval Variable

A type of quantitative variable that exhibits ordered relationships with meaningful, equal distances between measurements but no true zero point.