A $100 Billion Increase in Government Spending Increases Real GDP

question 14

Multiple Choice

A $100 billion increase in government spending increases Real GDP by $900 billion.Assuming a constant price level,what does the government spending multiplier equal?

• A) 9
• B) 900
• C) 800
• D) 8
• E) 7

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Definitions:

Fair Trials

Legal proceedings that adhere to established rules and principles, ensuring impartiality and the right to a fair judgment for all parties involved.

Moral Dilemmas

Situations in which a decision must be made between two or more actions that are ethical but mutually exclusive.

Kantian Moral Theory

A philosophical approach to ethics that emphasizes duty, rationality, and the categorical imperative as foundational principles of moral action.

Deontological Evaluation

An ethical assessment based on the principle that the morality of an action is based on its adherence to rules or duties, regardless of the outcomes.