If the Multiplier Is 4 and Real GDP Increases by $520

question 138

Multiple Choice

If the multiplier is 4 and real GDP increases by $520 billion, the increase in investment spending must have been

• A)$110 billion.
• B)$120 billion.
• C)$130 billion.
• D)$140 billion.

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Definitions:

Accounting

The systematic process of recording, analyzing, summarizing, and reporting financial transactions of a business or individual.

Financial Information

Refers to data encompassing a company's financial status, including earnings, expenses, debts, and investments.

Natural Progression

refers to a gradual and continuous development or change in conditions, capacities, or phenomena following a sequence or a specific inherent course.

Business Begins

This term implies the initial stage or inception of a commercial enterprise or venture.