If the spending multiplier is equal to 4, then a $25 initial increase in investment spending will lead to a:

A. $100 increase in real GDP.
B. $1 decrease in real GDP.
C. $1 increase in real GDP.
D. $100 decrease in real GDP.


Answer: A

Economics

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Implicit and explicit costs are different in that:

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The LM curve slopes upward because

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Economics

Davis (1963) compares U.S. and British industrialization. What does he note in each country during industrialization?

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Economics