-Refer to the Table in the Exhibit

question 164

Multiple Choice

$$\begin{array} { c c c c } \hline \begin{array} { c } \text { Real } \\\text { GDP } \\( \$ ) \end{array} & \begin{array} { c } \text { Consumption } \\( \$ ) \end{array} & \begin{array} { c } \text { Planned } \\\text { investment } \\( \$ ) \end{array} & \begin{array} { c } \text { Government } \\\text { purchases } \\( \$ ) \end{array} \\\hline 1,800 & 1,540 & 100 & 200 \\1,900 & 1,620 & 100 & 200 \\2,000 & 1,700 & 100 & 200 \\2,100 & 1,780 & 100 & 200 \\2,200 & 1,860 & 100 & 200 \\2,300 & 1,940 & 100 & 200 \\\hline\end{array}$$
-Refer to the table in the exhibit.What is the government spending multiplier?  

• A) 2 
• B) 3 
• C) 4 
• D) 5

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Definitions:

Psychology

The scientific study of the mind and behavior, encompassing various aspects of human experience, cognition, and emotion.

Empirical Claims

Claims that can be true or false depending on the facts.

Prove

To demonstrate the truth or existence of something through evidence or argument.

Confirmation Bias

The tendency to search for, interpret, and remember information in a way that confirms one's preconceptions.