If an Increase in Investment Spending of $50 Million Results

question 288

Multiple Choice

If an increase in investment spending of $50 million results in a $400 million increase in equilibrium real GDP,then

• A)the multiplier is 0.125.
• B)the multiplier is 3.5.
• C)the multiplier is 8.
• D)the multiplier is 50.

Identify ways to upgrade a computer's memory and processing capabilities.

Distinguish between different processor technologies and their functionalities.

Compare different processor brands and identify non-Intel processors.

Understand strategies for active and effective communication.

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Definitions:

Dollar Change

The difference in the price of a security from one trading period to the next, expressed in dollars.

Exercise Price

The amount for which someone holding an option is allowed to buy (for call options) or sell (for put options) the base asset.

Hedge Ratio

A ratio used to determine the amount of derivatives needed to hedge a particular exposure, indicating the relationship between the position size in hedging instruments and the size of the exposure.

American Put Options

Contracts that give the holder the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time period.