Suppose Investment Increases by $100 And, as a Result, GDP

question 103

Multiple Choice

Suppose investment increases by $100 and, as a result, GDP ultimately increases by $200.What does the multiplier equal?  

• A) 1 
• B) 2 
• C) 3 
• D) 4

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Definitions:

Historical Approach

A method of examination that involves considering the sequence of past events, changes, and developments to understand current conditions or phenomena.

Desired Performance

The standard or level of output that an organization aims to achieve through its employees or systems.

Actual Performance

The real outputs or results achieved by an individual, team, or organization.

Negative Connotation

The association of a word or phrase with something negative, making it undesirable or unattractive.