If an Increase in Investment Spending of $30 Million Results

question 80

Multiple Choice

If an increase in investment spending of $30 million results in a $300 million increase in equilibrium real GDP, then the multiplier is:

• A)1.0.
• B)10.
• C)100.
• D)0.1.

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Definitions:

Z-value

A statistical measure representing the number of standard deviations from the mean a data point is.

Lower Limit

The lowest value in a set of data, or the minimum value that a certain variable, function, or sequence can assume.

Specification Limits

Pre-determined bounds that define the acceptable range of variation for a product's characteristics or a process's outputs.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values are from the average.