If Autonomous Consumption Rises by $40 And,as a Result,Real GDP

question 75

Multiple Choice

If autonomous consumption rises by $40 and,as a result,Real GDP rises by $240,then the multiplier is

• A) 4.
• B) 5.
• C) 6.
• D) 10.
• E) none of the above

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Definitions:

Master Budget

A comprehensive financial planning document that includes all of the subsidiary budgets within an organization, projecting its financial activities for the period.

Raw Materials Production Needs

The quantity and type of raw materials required to meet production schedules for finished goods.

Finished Goods

Products that have completed the manufacturing process but have not yet been sold or distributed to the end consumer.

Raw Materials Cost

The expense associated with the raw materials consumed in producing a finished product.