If the Multiplier Is 6 and If There Is No

question 110

Multiple Choice

If the multiplier is 6 and if there is no crowding-out effect,then a $60 billion increase in government expenditures causes aggregate demand to

• A)increase by $250 billion.
• B)increase by $333 billion.
• C)increase by $360 billion.
• D)None of the above are correct.

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Definitions:

Primary Market

The financial market where new securities are issued and sold for the first time to investors.

Marketing Efforts

The actions companies take to promote and sell their products or services in the market.

Primary Segment

The main target group of consumers that a business focuses its marketing and sales efforts on.

Target Sector

A specific segment of the market that a company aims to serve or sell its products and services to.