If the Spending Multiplier Is 1

question 45

Multiple Choice

If the spending multiplier is 1.2,then a $100 billion increase in government spending will increase private sector spending by

• A) $100 billion.
• B) $120 billion.
• C) $83.3 billion.
• D) $20 billion.

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Definitions:

Type B Behavior Pattern

A personality type characterized by less competitive, more relaxed, and less stress-prone behaviors than Type A.

External Locus of Control

A belief that outcomes in one's life are determined by external factors beyond one's control, as opposed to believing in the ability to influence outcomes through own efforts.

Internal Locus of Control

A psychological concept referring to individuals who believe they have control over the outcomes of their actions and experiences.

Coronary Heart Disease (CHD)

A disease characterized by the buildup of plaque in the coronary arteries, which can lead to reduced blood flow to the heart.