Suppose the Government Expenditure Increases by $200 and the Simple

question 132

Multiple Choice

Suppose the government expenditure increases by $200 and the simple spending multiplier equals 5.The final increase in output will be:

• A)$6000.
• B)$500.
• C)$200.
• D)more than $200.
• E)less than $200.

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Definitions:

Monopolizing

involves the domination of a market by a single producer or company, reducing competition and potentially controlling prices and supply in that market.

Abusive Means

Practices or methods that are harmful, manipulative, or intended to exploit or oppress individuals or groups.

Herfindahl Index

A measure of market concentration that calculates the sum of the squares of the market shares of the firms within an industry, used to assess the competition level.

Market Shares

The percentage of an industry's sales that a particular company controls.