If an Increase of $10 Billion of Investment Results in an Increase

question 34

Multiple Choice

If an increase of $10 billion of investment results in an increase in equilibrium expenditure of $40 billion, the expenditure multiplier equals

• A) $10 billion × $40 billion = $400 billion.
• B) $40 billion - $10 billion = $30 billion.
• C) $40 billion ÷ $10 billion = 4.
• D) $10 billion ÷ $40 billion = 0.25.
• E) $10 billion - $40 billion = -$30 billion.

Understand reference comparison using == for objects in Java.

Analyze and predict the outcome of conditional statements and expressions.

Understand the execution flow of switch statements in Java.

Execute and understand conditional operations using conditional (ternary) operator in Java.

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Definitions:

Nondiversifiable Risk

The portion of investment risk that cannot be eliminated through diversification, attributed to market factors affecting all investments.

Inflation

The upward movement in the general price index of goods and services, which diminishes the purchasing ability.

Total Return

The overall financial gain or loss on an investment over a specific period, including dividends, interest, and capital gains.

Market

The collective system of buying, selling, and trading goods, services, or financial instruments among buyers, sellers, and intermediaries.