The Following Information Is for a Closed Economy

question 107

Multiple Choice

The following information is for a closed economy:

-Refer to the above information.The introduction of $80 billion of government spending has:

• A) lowered the multiplier from 2.5 to 2.0.
• B) increased the multiplier from 2.5 to 3.0.
• C) increased the multiplier from 2.0 to 2.5.
• D) had no effect on the size of the multiplier.

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Definitions:

Clay Minerals

A group of hydrous aluminium phyllosilicates, often containing iron, magnesium, or potassium, critical for soil structure and fertility.

Quartz

is a hard, crystalline mineral composed of silicon and oxygen atoms, one of the most abundant minerals in the Earth's crust.

Granite

Granite is a coarse-grained igneous rock comprised mainly of quartz, feldspar, and mica, known for its strength and widely used in construction and monuments.

Surface Area

The total area that the surface of an object occupies.