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:

Individualistic Cultures

Cultures that emphasize the needs and goals of the individual over the needs and goals of the group.

Romantic Partner

An individual with whom one shares a romantic or intimate relationship, often characterized by love, commitment, and emotional connection.

Dependability

The quality of being trustworthy and reliable, consistent in performance or behavior.

Friendship Patterns

The recurrent behaviors and interactions that characterize the relationships between friends, often influenced by social, cultural, and individual factors.