An $18 Billion Increase in Spending Creates $18 Billion of New

question 80

Multiple Choice

An $18 billion increase in spending creates $18 billion of new income in the first round of the multiplier process and $13.5 billion in the second round.The multiplier in the economy is

• A)2.
• B)3.
• C)4.
• D)5.

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Definitions:

Marginal Analysis

A method used in economics and decision-making that examines the costs and benefits of making small (marginal) adjustments to the quantity of a good or service.

Economic Terms

Vocabulary and phrases specific to the study and practice of economics, encompassing theories, models, and real-world financial practices.

Additional Exercise

Additional physical activity or workouts beyond one's regular routine, often aimed at improving fitness or health.

Margin Decision

Decision-making process that involves considering the incremental costs or benefits resulting from a particular action or choice.