If the Spending Multiplier Is 3 and the Desired Amount

question 37

Multiple Choice

If the spending multiplier is 3 and the desired amount of increase in real GDP is $90 million, then by how much would government spending have to increase?​

• A) ​$270 million.
• B) ​$90 million.
• C) ​$30 million.
• D) ​$0.

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Definitions:

Cultural Competence

The ability to understand, appreciate, and interact effectively with people of different cultures and socio-economic backgrounds.

Sustained Commitment

Ongoing dedication or pledge to a cause, project, or initiative over an extended period, showcasing long-term engagement and perseverance.

Self-Honesty

The quality of being truthful and sincere with oneself, acknowledging true feelings, desires, and faults without self-deception.

Ethnorelativism

Ethnorelativism is the understanding and acceptance of the values, beliefs, and practices of cultures different from one's own, recognizing the equal value of all cultures.