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:

Korean War

A conflict between North Korea, with military support from China and the Soviet Union, and South Korea, supported by forces from the United Nations, especially the United States, lasting from 1950 to 1953.

Yalu River

The river that forms the border between North Korea and China, known for being a significant site during the Korean War when Chinese forces crossed it to assist North Korea.

U.N. Forces

Military and peacekeeping troops contributed by member countries of the United Nations, used in various conflict zones to enforce peace agreements and provide stability.

Spy Plane

An aircraft used for espionage, designed to gather intelligence through aerial reconnaissance, often equipped with advanced surveillance technologies.