The fiGure Shows the Saving Schedules for Economies 1, 2

question 202

Multiple Choice

The figure shows the saving schedules for economies 1, 2, 3, and 4. Which economy has the largest multiplier?

• A) 1
• B) 2
• C) 3
• D) 4

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Definitions:

Capacity

The maximum amount that something can contain or produce; in a business context, it often refers to the maximum output or production ability.

Collateral

An asset that a borrower offers to a lender as security for a loan.

Capital

Refers to financial assets, including funds held in deposit accounts and investments, but can broadly include anything that can enhance a person’s or entity’s ability to generate value.

Character

In finance, part of credit analysis that evaluates a borrower's reputation or track record in repaying debts.