Everything Else the Same, If Investment Expenditures Rise by $300

question 105

Multiple Choice

Everything else the same, if investment expenditures rise by $300 billion and imports increase by $300 billion, then GDP

• A) increases by $600 billion.
• B) increases by $300 billion.
• C) decreases by $600 billion.
• D) does not change.

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Definitions:

Business Sector

A segment of the economy that represents the activities of businesses, corporations, and private enterprises that provide goods and services to consumers.

Deng Xiaoping

A Chinese communist leader who initiated significant economic reforms in China from the late 1970s, leading to its market economy transformation.

Civilian Goods

Items produced for use by civilians, rather than for military purposes.

National Defense

The protective measures taken by a nation in order to defend itself against potential aggressors, including military forces and defense strategies.