Suppose the Multiplier Has a Value That Exceeds 1,and There

question 33

Multiple Choice

Suppose the multiplier has a value that exceeds 1,and there are no crowding out or investment accelerator effects.Which of the following would shift aggregate demand to the right by more than the increase in expenditures?

• A)an increase in government expenditures
• B)an increase in net exports
• C)an increase in investment spending
• D)All of the above are correct.

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Definitions:

Scienter

A legal term used to refer to a party's knowledge of the wrongfulness or fraudulent nature of their actions.

Williams Act

A subset of the Securities Exchange Act of 1934, regulating tender offers and requiring disclosure of information by anyone seeking to acquire more than 5% of a company's securities.

Tender Offers

Public, open proposals by a party to purchase a substantial portion of a company’s shares or bonds from its shareholders or bondholders.

Consent Orders

Legal agreements approved by a judge that resolve disputes without admitting guilt or fault by either party, often used in regulatory settlements.