If an Increase of $10 Billion in Investment Results in an Increase

question 33

Multiple Choice

If an increase of $10 billion in investment results in an increase in equilibrium expenditure of $40 billion, the multiplier equals

• A) $10 billion × $40 billion = $400 billion.
• B) $10 billion - $40 billion = -$30 billion.
• C) $10 billion ÷ $40 billion = 0.25.
• D) $40 billion ÷ $10 billion = 4.
• E) $40 billion - $10 billion = $30 billion.

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Definitions:

Voluntary Employee Insurance

Insurance policies offered by employers but paid for wholly or in part by employees, often including health, life, or disability coverage.

Supplemental Unemployment Benefits

Additional financial assistance provided to unemployed workers, supplementing standard unemployment benefits to help meet their needs.

Defined Contribution Plans

A type of retirement plan where employees contribute a fixed amount or percentage of their paychecks into an account for their future retirement, with the final benefits based on the account balance at retirement.

Benefit Audit

A thorough examination of an organization's employee benefits program to ensure compliance, effectiveness, and efficiency.