If a $500 Billion Increase in Investment Spending Increases Income

question 129

Multiple Choice

If a $500 billion increase in investment spending increases income by $500 billion in the first round of the multiplier process and by $450 in the second round, income will eventually increase by

• A) $2,500 billion.
• B) $3,000 billion.
• C) $4,000 billion.
• D) $5,000 billion.

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Definitions:

Libido

A term used to describe sexual drive or desire, often influenced by psychological, social, and biological factors.

Superego

A component of Sigmund Freud's psychoanalytic theory, representing the moral part of the mind that internalizes societal rules and standards.

Dominant Part

The component within a system or relationship that holds primary influence or control over the others.

Sexual Instinct

Sexual Instinct is the innate or biological drive related to sexual activity and reproduction.