If the Multiplier Is 3,a $1 Billion Decrease in Government

question 68

Multiple Choice

If the multiplier is 3,a $1 billion decrease in government spending will

• A) lower equilibrium GDP by one-third.
• B) lower equilibrium GDP by 3.
• C) raise equilibrium GDP by one-third.
• D) raise equilibrium GDP by 3.
• E) leave equilibrium GDP unchanged but change intended spending by one-third.

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Definitions:

Absolute Privilege

A legal immunity shielding individuals from lawsuits for statements made during certain official proceedings, regardless of their truth or intention.

Invasion Of Privacy

The intrusion into the personal life of another, without just cause, which can give the person whose privacy has been invaded a right to bring a lawsuit for damages against the person or entity that intruded.

Intent Necessary

The requirement in law and ethics that an action must be accompanied by a conscious aim or purpose to perform that action.

Commit A Tort

The act of violating a duty or law, resulting in harm or injury to another, which can be redressed by a lawsuit for damages.