Assuming Multiplier but No Crowding-Out or Investment-Accelerator Effects,a $100 Billion

question 114

Multiple Choice

Assuming multiplier but no crowding-out or investment-accelerator effects,a $100 billion increase in government expenditures shifts aggregate

• A)demand right by more than $100 billion.
• B)demand right by less than $100 billion.
• C)supply left by more than $100 billion.
• D)supply left by less than $100 billion.

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Definitions:

Tax-Free Acquisition

An acquisition in which the acquired company's shareholders do not have to pay taxes on the securities or cash they receive as part of the acquisition deal.

Business Purposes

The intention behind an action or decision in the context of conducting business.

Selling Shareholders

Investors or entities that own a company's shares and are selling them in a public offering or private sale.

Net Operating Losses

Financial losses that a company reports when its operating expenses exceed its revenues, which can be used for tax relief.