If a $500 billion increase in investment spending increases income by $500 billion in the first round of the multiplier process and by $450 in the second round, income will eventually increase by:

A. $2,500 billion.
B. $3,000 billion.
C. $4,000 billion.
D. $5,000 billion.


D. $5,000 billion.

Economics

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When there is a recessionary gap, capital and labor resources are:

A. decreasing in number. B. not being fully utilized. C. producing beyond their capacity. D. misallocated.

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Aggregate demand is the total demand for intermediate goods and services in an entire economy

Indicate whether the statement is true or false

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Unanticipated inflation is associated with cost increases which are not expected

Indicate whether the statement is true or false

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Refer to the table above. If the opportunity cost of time increases to $60 per hour, renting which apartment will turn out to be the most expensive every month?

A) 1 B) 2 C) 3 D) 4

Economics