If a $10 Billion Increase in Investment Leads to a $20

question 32

Multiple Choice

If a $10 billion increase in investment leads to a $20 billion increase in GDP,the multiplier is

• A) 0.5.
• B) 2.
• C) 10.
• D) 30.

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Definitions:

Open System

A concept in systems theory where an organization is seen as being open to, and interacting with, its environment in a dynamic exchange of information, energy, and resources.

Resource Inputs

The resources (such as time, money, materials, and labor) that are utilized in the production process or in the provision of services.

Outputs

The results or products that emerge from a system, process, or activity, measuring its effectiveness or productivity.

Tight Bureaucracy

A highly structured and rule-oriented form of organization where the adherence to formal procedures and hierarchies is emphasized.