If an Increase in Investment of $50 Causes an Increase

question 172

Multiple Choice

If an increase in investment of $50 causes an increase in real GDP of $250, the value of the spending multiplier is:

• A)5.
• B).20.
• C).80.
• D)3.
• E)10.

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Definitions:

Biotech Firm

A company that uses living systems and organisms to develop or make products, often focused on medical, agricultural, or industrial applications.

Productive Workers

Employees who are efficient in their work, contributing significantly to the output and success of the business.

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A measure of the highest level of education completed by an individual or population, often used as an indicator of socioeconomic status.