If the Spending Multiplier Is Equal to 4, Then a $25

question 94

Multiple Choice

If the spending multiplier is equal to 4, then a $25 initial increase in investment spending will lead to a:

• A) $100 increase in real GDP.
• B) $1 decrease in real GDP.
• C) $1 increase in real GDP.
• D) $100 decrease in real GDP.

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Definitions:

Linking Pins

Concepts in organizational behavior that represent individuals or units acting as the connection between two or more groups or levels within an organization, facilitating coordination and communication.

Flat Hierarchical Model

An organizational structure with few or no levels of middle management between staff and executives, promoting open communication and quicker decision-making.

Member Motivation

The driving force behind individuals' engagement, participation, and effort in a group or organization.

Committee

A group of individuals designated to perform a specific task or to deliberate on a particular issue or range of issues.