The Following Question Are Based on the Following Diagram

question 18

Multiple Choice

The following question are based on the following diagram:

-From the diagram,one can infer that

• A) changes in government spending change the value of the multiplier.
• B) an increase in government spending results in a budget surplus.
• C) a decrease in government spending results in a corresponding increase in private spending.
• D) government spending should always be increased.
• E) an increase (or decrease) in government spending leads to an increase (or decrease) in total intended spending.

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Definitions:

Physical

Relating to things perceived through the senses as opposed to the mind; tangible or concrete.

Social

Pertains to activities, processes, or phenomena that involve interactions between individuals or groups in a society.

Intensity

The degree of strength, force, or concentration applied in a specific action, situation, or characteristic.

Brightness

The perception of how luminous an object appears to a viewer, typically influenced by the light it emits or reflects.