If an Increase in Investment Spending of $20 Million Results

question 3

Multiple Choice

If an increase in investment spending of $20 million results in a $200 million increase in equilibrium real GDP,then

• A)the multiplier is 0.1.
• B)the multiplier is 1.
• C)the multiplier is 10.
• D)the multiplier is 100.

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Definitions:

Cognitive Perspective

An approach in psychology that emphasizes internal mental processes such as thinking, decision-making, and problem-solving.

Evolutionary Perspective

A theoretical approach that examines how evolutionary principles, such as natural selection, shape behaviors and mental processes.

Correlation Coefficient

A statistical measure that indicates the extent to which two or more variables fluctuate together, ranging from -1 to 1.

Humanistic Perspective

A psychological perspective that emphasizes individual potential for growth and the role of unique human experiences in shaping personality, focusing on free will and self-actualization.