Use the Following to Answer Questions

question 91

Multiple Choice

Use the following to answer questions :
Figure: Circular-Flow Model
-(Figure: Circular-Flow Model) Look at the figure Circular-Flow Model. If the circular-flow model is in equilibrium (the sum of money flowing into each box is equal to the sum of the money flowing out of it) and there is an increase in investment spending, which of the following is likely to happen?

• A)a decrease in the nominal GDP
• B)an increase in the nominal GDP
• C)an increase in the unemployment rate
• D)a decrease in the inflation rate

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Definitions:

Factors

Variables or elements that contribute to or influence an outcome.

Nearest Whole

The process of rounding a number to the closest whole number.

Decimal Place

The position of a number to the right of the decimal point, indicating its fractional part, used to measure precision.

Aloud

To say something in a voice that can be clearly heard; not silently or in a whisper.