If the Multiplier Is 4 and Real GDP Increases by $520

question 138

Multiple Choice

If the multiplier is 4 and real GDP increases by $520 billion, the increase in investment spending must have been

• A)$110 billion.
• B)$120 billion.
• C)$130 billion.
• D)$140 billion.

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Definitions:

Natural Ecosystems

Natural ecosystems are biological communities that interact with their physical environment, functioning through naturally occurring processes without significant human intervention.

Dead Organic Material

Non-living plant and animal matter that has not yet decayed, providing nutrients and energy sources for decomposers in ecosystems.

Recycle

The process of collecting and processing materials that would otherwise be thrown away as trash and turning them into new products.

Nutrients

Substances that provide nourishment essential for growth and the maintenance of life.