Use the Following to Answer Questions

question 36

Multiple Choice

Use the following to answer questions :
Scenario: Fiscal Policy
Consider the economy of Arcadia. Its households spend 75% of increases in their income. There are no taxes and no foreign trade. Its currency is the arc. Potential output is 600 billion arcs.
-(Scenario: Fiscal Policy) Look at the scenario Fiscal Policy. The government spending multiplier is:

• A)5.
• B)0.75.
• C)4.
• D)3.

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Definitions:

Detractors

Individuals or entities that actively express criticism or disapproval, often working to decrease support or enthusiasm for something.

Labor Market Discrimination

Labor market discrimination occurs when individuals receive different treatment in employment opportunities, such as hiring, promotion, or wages, based on characteristics unrelated to their job performance, like race, gender, or age.

Temporary Assistance

Short-term aid or support provided to individuals or families in need, often from governments or charitable organizations.

Needy Families

Refers to low-income families that require financial assistance or support services to meet basic living needs.