Multiple Choice
If businesses spend an additional $150 billion for investment projects in 2010, what will be the impact on national income (Y) if the multiplier is 2?
A) Y will increase by $50 billion.
B) Y will increase by $150 billion.
C) Y will increase by $300 billion.
D) Y will increase by $450 billion.
Correct Answer:
Verified
Correct Answer:
Verified
Q41: In the simplified circular flow diagram, leakage
Q42: Which of the following shows the relationship
Q43: Assume that the MPC is 0.85 and
Q44: The multiplier is the<br>A)impact that investment has
Q45: The equilibrium level of GDP is always
Q47: An increase in investment spending will be
Q48: Suppose the economy is suffering in a
Q49: Realistically, the impact of the multiplier is
Q50: In a simple economy (no government sector),
Q51: Table 9-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Table 9-1