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.

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Definitions:

Constructive Eviction

In landlord–tenant law, a breach of duty by the landlord that makes the premises uninhabitable or otherwise deprives the tenant of the benefit of the lease and gives rise to the tenant’s right to vacate the property and terminate the lease.

Commercial Property

Real estate property that is used for business activities.

Reasonable Security

Measures taken to protect against foreseeable threats to safety and security.

Liability

A legal responsibility or obligation, often involving the need to pay damages or restitution as a result of one's actions or failure to act.