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:

Auditory Communication

The transmission of information or messages through sound waves, which can be received and interpreted by hearing.

Physical Communication

The use of body language, facial expressions, and other non-verbal cues to convey information or express emotions.

Associative Learning

The process by which an individual learns the connection between two stimuli or between a behavior and a consequence.

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment.