The Following Table Illustrates the Multiplier Process in a Private

question 102

Multiple Choice

The following table illustrates the multiplier process in a private closed economy:

-Refer to the above table.The total change in income resulting from the initial change in investment will be:

• A) $100
• B) $20
• C) $80
• D) $200

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Definitions:

Sales

Transactions involving the exchange of goods or services for money or other compensation.

First Quarter

The initial three-month period in a fiscal year; often used in financial reporting and analysis.

Service Business

A type of business that provides intangible products or services to consumers, as opposed to selling physical goods.

Overhead

General, ongoing business expenses not directly attributed to creating a product or service, including rent, utilities, and insurance.