If Firms Increase Their Investment Spending,the Resulting Change in Equilibrium

question 106

Multiple Choice

If firms increase their investment spending,the resulting change in equilibrium GDP is equal to the change in investment spending

• A) multiplied by 2.5
• B) alone
• C) multiplied by the expenditure multiplier
• D) divided by the marginal propensity to consume
• E) plus the change in consumption spending

---

Definitions:

Ecological Capacity

The capacity of an ecosystem to support biological organisms, including the natural resources and processes that maintain life and biodiversity.

Adequate Sanitation

Access to facilities and services for the safe disposal of human urine and feces, which is crucial for public health and hygiene.

Clean Drinking Water

Water that is safe for human consumption, free from contaminants and harmful substances.