Some Economists Argue That the Spending Multiplier Is Actually Less

question 29

Multiple Choice

Some economists argue that the spending multiplier is actually less than 1.If the spending multiplier is 0.8,then a $200 billion increase in government spending will increase GDP by

• A) $200 billion.
• B) $160 billion.
• C) $40 billion.
• D) $250 billion.

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Definitions:

Diastole

The phase of the heartbeat when the heart muscle relaxes and allows the chambers to fill with blood.

Resting

The state of being at ease, still, or inactive, allowing for recovery and rejuvenation of the body and mind.

Filling

A process or action that results in a space or container becoming full, often used in medical contexts to describe the restoration of lost tissue volume or the application of dental materials to cavities.

Dilation

The process of expanding or widening in size, often referring to the dilation of blood vessels or pupils.