If an Increase in Investment of $100 Billion Generates an Increase

question 119

Multiple Choice

If an increase in investment of $100 billion generates an increase of $500 billion in real GDP, the multiplier is

• A)20
• B)50
• C)1.50.
• D)5.00.

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Definitions:

Nondiscriminating Pure Monopolist

A monopolist that charges all consumers the same price for its product, despite potential differences in the market.

Pure Monopolist

A single supplier in a market that controls all the supply of a particular good or service, with no close substitutes available, allowing for the setting of prices.

Profit-Maximizing

The procedure through which a corporation decides on the price and the amount of production that yields the most profit.

Pure Monopolist

A market structure in which a single seller controls the entire supply of a good or service, and where the entry of new competitors is prevented or highly restricted.