If the Government Increases Its Purchases by $100 and the Multiplier

question 17

Multiple Choice

If the government increases its purchases by $100 and the multiplier is 4,then equilibrium real GDP demanded

• A)increases by $25
• B)decreases by $25
• C)increases by $100
• D)increases by $400
• E)decreases by $400

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Definitions:

Environmental Mastery

The sense that one has the ability to manage or alter the environment to suit their needs, reflecting a high level of personal competence and control.

Self-Acceptance

The process of acknowledging and embracing all aspects of oneself, including strengths and weaknesses.

Social Convoy Theory

Theory, proposed by Kahn and Antonucci, that people move through life surrounded by concentric circles of intimate relationships on which they rely for assistance, well-being, and social support.

Financial Support

Monetary assistance provided to individuals or groups to help cover expenses and maintain financial stability.