If Businesses Spend an Additional $150 Billion for Investment Projects

question 46

Multiple Choice

If businesses spend an additional $150 billion for investment projects in 2010, what will be the impact on national income (Y) if the multiplier is 2?

• A)Y will increase by $50 billion.
• B)Y will increase by $150 billion.
• C)Y will increase by $300 billion.
• D)Y will increase by $450 billion.

Understand the legal concept of promissory estoppel and its application.

Distinguish between bilateral and unilateral contracts and their respective consideration requirements.

Analyze the role of past consideration and forbearance in contract law.

Identify the factors the courts consider when determining the adequacy of consideration.

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security representing ownership in a corporation, entitling the holder to vote on corporate matters and receive dividends.

Earnings Per Share

The portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of a company's profitability.

Stock Split

An action by a company to divide its existing shares into multiple new shares to boost the liquidity of the shares.

EPS Rise

An increase in a company's earnings per share (EPS), indicating that it is generating greater profits relative to the number of shares outstanding.