If a $2 Billion Increase in Investment Brings About a $5

question 144

Multiple Choice

If a $2 billion increase in investment brings about a $5 billion increase in equilibrium expenditure,we know that the multiplier equals

• A)10.
• B)2.5.
• C)4.
• D)5.
• E)3.

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Definitions:

Net Proceeds

The amount of money remaining after all deductions, like expenses and taxes, are subtracted from the gross proceeds.

Weekly Salary

The total amount of money earned by an employee for work performed in a week.

Commission

A fee paid for services, usually a percentage of the total cost, to a person or company for conducting a transaction or service.

Dealer Price

The amount a dealer pays for a product or vehicle, which usually excludes any additional fees or markups before selling it to the end consumer.