The Multiplier Means That an Increase in Investment Results in ________

question 228

Multiple Choice

The multiplier means that an increase in investment results in ________ aggregate expenditure that is ________ the increase in investment.

• A) increase; larger than
• B) increase; the same size as
• C) increase; smaller than
• D) decrease; larger than
• E) decrease; smaller than

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Definitions:

De Facto Corporation

Latin for “corporation in fact”; a corporation that has not substantially met the requirements of the state incorporation statutes.

Corporation By Estoppel

A defective corporation that has conducted business with a third party and therefore cannot deny its status as a corporation to escape liability.

De Jure Corporation

Latin for “lawful corporation”; a corporation that has met the mandatory statutory provisions and thus received its certificate of incorporation.

Alien Corporation

A business that is incorporated in a foreign country.