Scenario 34-1

question 105

Multiple Choice

Scenario 34-1. Take the following information as given for a small economy:
• When income is $10,000, consumption spending is $6,500.
• When income is $11,000, consumption spending is $7,250.
-Refer to Scenario 34-1. The multiplier for this economy is

• A)2.85.
• B)1.53.
• C)4.00.
• D)7.00.

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Definitions:

Carboniferous

A geologic period and system that spans 60 million years from the end of the Devonian Period 358.9 million years ago, to the beginning of the Permian Period.

Ordovician

A geologic period and system of the Paleozoic Era, occurring around 485 to 444 million years ago, noted for its high levels of marine biodiversity.

Pleistocene

An epoch of the geological time scale, lasting from about 2.6 million to 11,700 years ago, marked by repeated glacial cycles.

Cretaceous

A geological period of the Mesozoic Era, occurring around 145 to 66 million years ago, known for the dominance of dinosaurs and ending with their mass extinction.