If Businesses Spend an Additional $150 Billion for Investment Projects

question 46

Multiple Choice

If businesses spend an additional $150 billion for investment projects in 2010, what will be the impact on national income (Y) if the multiplier is 2?

• A)Y will increase by $50 billion.
• B)Y will increase by $150 billion.
• C)Y will increase by $300 billion.
• D)Y will increase by $450 billion.

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Definitions:

Psychological Factors

Elements of an individual's mental state that can affect their emotional well-being, behavior, and perception.

Stress-Related Events

Incidents or periods that lead to stress, causing physical or emotional strain or tension.

Kwashiorkor

A severe form of malnutrition caused by a protein deficiency, typically affecting young children in developing countries.

Malnutrition

A condition resulting from insufficient, excessive, or imbalanced consumption of nutrients, leading to health problems.