Assuming No Crowding-Out,investment-Accelerator,or Multiplier Effects,a $100 Billion Increase in Government

question 107

Multiple Choice

Assuming no crowding-out,investment-accelerator,or multiplier effects,a $100 billion increase in government expenditures shifts aggregate demand

• A)right by more than $100 billion.
• B)right by $100 billion.
• C)left by more than $100 billion.
• D)left by $100 billion.

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and gives holders voting rights and a share in the company's profits via dividends.

Paid-In Capital

Funds that shareholders contribute to a company in exchange for equity, beyond the par value of the shares.

Par Value

The face value of a stock or bond as stated by the issuing company, which does not necessarily reflect its market value.

Common Stock

A type of equity security that represents ownership in a corporation, with holders usually having voting rights and a claim on profits.