An Increase in Investment Can Lead to a Greater Increase

question 40

Multiple Choice

An increase in investment can lead to a greater increase in aggregate demand if the value of the spending multiplier is:

• A)greater than 1.
• B)less than 1 but more than zero.
• C)negative.
• D)exactly equal to zero.
• E)exactly equal to one.

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Definitions:

Erythroblastosis Fetalis

A serious anemia that develops in a fetus with Rh-positive blood as a result of antibodies in an Rh-negative mother’s body.

Embolus

A blood clot, air bubble, piece of fatty deposit, or other object that has been carried in the bloodstream to lodge in a vessel and cause an embolism.

Coronary Artery

The arteries that supply blood to the heart muscle itself.

Myocardial Infarction

Commonly known as a heart attack, this condition occurs when blood flow to a part of the heart is blocked for a long enough time to cause damage or death to heart muscle.