If a $500 Billion Increase in Investment Spending Increases Income

question 111

Multiple Choice

If a $500 billion increase in investment spending increases income by $500 billion in the first round of the multiplier process and by $450 in the second round, income will eventually increase by

• A)$2,500 billion.
• B)$3,000 billion.
• C)$4,000 billion.
• D)$5,000 billion.

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Definitions:

Interpersonal Conflict

A situation in which two or more people in an interaction perceive incompatible goals or interference in achieving their objectives.

Approach-Avoidance Conflict

A psychological conflict occurring when a goal is both attractive and undesirable at the same time, creating internal emotional tension.

Avoidance-Avoidance Conflict

A psychological conflict that arises when an individual must choose between two undesirable outcomes.

Approach-Approach Conflict

A decision-making dilemma involving the need to choose between two desirable goals.