Everything Else the Same,if Government Expenditure Increases by $400 Billion

question 202

Multiple Choice

Everything else the same,if government expenditure increases by $400 billion and imports increase by $400 billion,then GDP

• A)increases by $400 billion.
• B)increases by $200 billion.
• C)decreases by $400 billion.
• D)does not change.
• E)decreases by $200 billion.

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Definitions:

Systematic Risk

The peril present throughout an entire market or a portion of the market that cannot be alleviated by spreading investments.

Non-diversifiable Risk

The portion of an investment's risk that cannot be eliminated through diversification, related to factors affecting the entire market.

Unsystematic Risk

A type of risk that affects a small number of assets, often referred to as "specific risk," and is related to issues like management performance or consumer preferences.

Marketplace

A venue for buying and selling goods, services, or financial instruments, which can be physical or virtual.