If the Multiplier Is 4, a Decrease in Spending Equal

question 75

Multiple Choice

If the multiplier is 4, a decrease in spending equal to $80 billion will be accompanied by a decrease in GDP of

• A)$480 billion.
• B)$320 billion.
• C)$240 billion.
• D)$84 billion.
• E)$48 billion.

---

Definitions:

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used in statistical hypothesis testing and estimation.

Observations

The act of monitoring or recording systematically selected variables to gather data or insights.

Defect Rate

The proportion of defective items or errors found in a batch of products, used as a measure of quality in manufacturing processes.

Confidence

A feeling or belief that one can rely on someone or something; firm trust.