If an Increase in Investment Spending of $50 Million Results

question 288

Multiple Choice

If an increase in investment spending of $50 million results in a $400 million increase in equilibrium real GDP,then

• A)the multiplier is 0.125.
• B)the multiplier is 3.5.
• C)the multiplier is 8.
• D)the multiplier is 50.

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Definitions:

Planning

The methodology of establishing objectives, formulating strategies, and detailing the tasks and timelines needed to achieve those objectives.

Springboard To Success

A metaphorical phrase indicating a situation, opportunity, or resource that significantly aids in achieving success.

Planning

The process of setting goals, defining strategies to achieve those goals, and developing plans to integrate and coordinate activities.

Creativity

The ability to generate innovative ideas and solve problems in novel ways.