Assume There Is No Government or Foreign Sector

question 173

Multiple Choice

Assume there is no government or foreign sector. If the multiplier is 10, a $10 billion increase in planned investment will cause aggregate output to increase by

• A) $1 billion.
• B) $5 billion.
• C) $10 billion.
• D) $100 billion.

---

Definitions:

Mutual Agreement

An understanding or contract reached between two or more parties, often formalized by a document, indicating a concurrence of wills or intentions.

Accord And Satisfaction

A contractual agreement where a dispute is settled by the parties involved agreeing to give and accept something of value in resolution.

Condition

A stipulation or prerequisite in a contract or agreement that must be met for the agreement to be fully enforceable.

Off-campus Neighborhoods

Residential areas located outside the boundaries of a college or university campus, often inhabited by students.