Everything Else the Same, If Investment Expenditures Rise by $300

question 105

Multiple Choice

Everything else the same, if investment expenditures rise by $300 billion and imports increase by $300 billion, then GDP

• A) increases by $600 billion.
• B) increases by $300 billion.
• C) decreases by $600 billion.
• D) does not change.

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Definitions:

Allantois

An extra-embryonic membrane in birds and reptiles, involved in gas exchange and waste storage during development.

Amnion

A membranous sac that surrounds and protects an embryo or fetus in the amniotic cavity of vertebrates.

Yolk Sac

An extra-embryonic membrane in many vertebrates that provides food for the embryo via absorbed nutrients.

Gas Exchange

The biological process through which organisms exchange oxygen and carbon dioxide with their environment, typically occurring in the lungs or gills.