Which Statement About the Multiplier Is Correct

question 71

Multiple Choice

Which statement about the multiplier is correct?

• A)If a $20 billion increase in spending creates $20 billion of new income in the first round of the multiplier process and $15 billion in the second round, the multiplier in the economy is 5.
• B)If a $40 billion increase in spending creates $40 billion of new income in the first round of the multiplier process and $20 billion in the second round, the multiplier in the economy is 4.
• C)If a $60 billion increase in spending creates $60 billion of new income in the first round of the multiplier process and $50 billion in the second round, the multiplier in the economy is 5.
• D)If an $80 billion increase in spending creates $80 billion of new income in the first round of the multiplier process and $60 billion in the second round, the multiplier in the economy is 4.

Understand the impact of environmental factors on intelligence development.

Comprehend the concept of intelligence as measured by IQ and its determinants.

Recognize the influence of genetic factors on intelligence.

Appreciate the benefits of early educational interventions for intelligence development.

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Definitions:

Financial Theory

A branch of economics that aims to understand and explain how financial markets operate, the structure of capital markets, and the pricing of financial instruments.

Economics

The social science that studies how people use scarce resources to produce valuable commodities and distribute them among different people.

Mathematics

Mathematics is the abstract study of numbers, quantity, structure, space, and change, used as a tool in a wide range of disciplines.

Stockholders

Individuals or entities that own shares in a corporation, giving them a stake in the company's performance and potential profits.