Figure 23-3 -Refer to Figure 23-3.Suppose That Investment Spending Increases by $10

question 183

Multiple Choice

Figure 23-3
-Refer to Figure 23-3.Suppose that investment spending increases by $10 million,shifting up the aggregate expenditure line and GDP increases from GDP1 to GDP2.If the MPC is 0.9,then what is the change in GDP?

• A)$9 million
• B)$10 million
• C)$90 million
• D)$100 million

---

Definitions:

Deferred Contribution

Contributions or payments made to a fund or organization that are to be recognized as revenue over a future period.

Specific Project

A particular plan or undertaking designed to achieve a certain goal within a designated timeframe and often with a defined budget.

Reporting Method

Refers to the various methodologies and guidelines used for preparing and presenting financial statements.

Restricted Contribution

A donation given to a nonprofit organization with specific conditions attached as to how it can be spent.