If a $50 Billion Decrease in Investment Spending Causes Income

question 31

Multiple Choice

If a $50 billion decrease in investment spending causes income to decline by $50 billion in the first round of the multiplier process and by $25 in the second round,the multiplier in the economy is:

• A) 2.
• B) 3.33.
• C) 5.
• D) 10.

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Definitions:

Emission Reductions

The process of lessening the amount of pollutants released into the atmosphere, often targeting greenhouse gases to combat climate change.

Government Standards

Regulations established by the government to dictate the minimum acceptable levels of safety, quality, or performance for products, services, or actions.

Emission Reductions

The process or policy of reducing the amount of pollutants released into the atmosphere, typically to combat pollution and climate change.

Externality Compensation

Payments or remedies provided to offset the unintended negative or positive effects imposed on third parties by the production or consumption of goods and services.