Scenario 11-1 The Information Below Is Relevant to the Following Question(s)

question 24

Multiple Choice

Scenario 11-1
The information below is relevant to the following question(s) .
Assume IBM decides,despite an ongoing recession,to build a new branch for computer analysis in Bozeman,Montana.The plant expects to spend $12 million to hire the necessary employees,all of whom move in from out of state to take the jobs.
-Refer to Scenario 11-1.If Bozeman citizens decided to spend more than 3/4 of the additional income,

• A)the MPC would decrease.
• B)the expenditure multiplier would decrease.
• C)the expansion in income would be larger.
• D)aggregate expenditures would decline.

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Definitions:

Theocracy

Rule by (i.e., leadership of the society accorded to) the most powerful religious people. (Literally, “rule by God.”)

Religious Figure

An individual who is recognized within a religion for their sanctity, leadership, or spiritual insight.

Philosophy

Philosophy is the study of fundamental questions about existence, knowledge, values, reason, mind, and language.

Racist Society

A social structure in which systemic racism is practiced, normalized, and enforced by societal customs, laws, and policies.