A $15 Trillion Increase in Investment Leads Equilibrium Expenditure to Increase

question 301

Multiple Choice

A $1.5 trillion increase in investment leads equilibrium expenditure to increase from $7.0 trillion to $10.5 trillion.In this case, the expenditure multiplier is

• A) 1.50.
• B) 2.33.
• C) 4.67.
• D) 7.00.
• E) 10.5.

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Definitions:

Photographs

Images captured by a camera that record visual information on a light-sensitive surface or digital medium.

Spinal Reflexes

Automatic responses to stimuli that are mediated by the spinal cord, bypassing the brain's involvement.

Painful Stimulus

A stimulus that is physically uncomfortable or hurtful, often triggering a reflexive withdrawal or response to stop the pain.

Motor Response

The physical reaction of the body to a stimulus, involving movement of muscles.