Assuming That the Government Can Act Immediately Before the Multiplier

question 47

Multiple Choice

Assuming that the government can act immediately before the multiplier takes effect, then to offset a reduction in investment by $1 billion, government purchases must be:

• A) increased by $1 billion.
• B) decreased by $1 billion.
• C) increased by $0.5 billion.
• D) increased by $2 billion.

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Definitions:

Commuter Marriages

Marital relationships where spouses live apart in different geographic locations for employment or other reasons, maintaining their marriage primarily through visits and communication technology.

Geographic Areas

Defined regions or spaces on Earth, distinguished by physical, administrative, or cultural criteria.

Pregnancy Discrimination Act

A federal law in the United States that prohibits employment discrimination against pregnant women.

Nonverbal Sexual Harassment

Unwanted sexual attention expressed through nonverbal cues such as gestures, facial expressions, or body language.