Exhibit 12-1 -Given the Information in Exhibit 12-1, the Government Spending Multiplier

question 69

Multiple Choice

Exhibit 12-1

-Given the information in Exhibit 12-1, the government spending multiplier is equal to

• A)2
• B)3
• C)4
• D)5

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Definitions:

Budgeted Production

An estimate of the quantity of goods or services that an organization plans to produce over a specific period based on forecasted sales demand.

Projected Sales

Estimated revenue that a company expects to generate from goods or services in a future period.

Inventory Units

The individual items or quantities of product a company has available for sale or use in production at any given time.

Future Goals

Objectives or targets that an individual or organization plans to achieve in a future time frame.