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:

Auricle

The visible part of the ear that is outside the head, also known as the pinna, which helps direct sound into the ear canal.

Ear Canal

The narrow passage leading from the outer ear to the eardrum.

Acidic Medication

Medications that have a low pH and can increase the acidity of bodily fluids or tissues, potentially used for specific medical conditions.

Tuberculin Test

A diagnostic test for tuberculosis where a small amount of tuberculin is injected under the skin to check for a reaction indicating TB exposure.