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the multiplier effect is exemplified by the multiplied impact on 1. the money su

ID: 1229070 • Letter: T

Question

the multiplier effect is exemplified by the multiplied impact on
1. the money supply of a given increase in gov purchases
2.tax revenues of a given increase in government purchases
3. investment of a given increase in interest rate
4.aggregate demand of a given increase in gov purchases.

the increase in international trade is the US is partly due to
1.improvements in transportation
2.advances in telecommunications
3.increased trade of goods with a high value per pound
4. all the above

an increase in government spending on goods to build or repair infrastructure
1. shifts the aggregate demand curve to the right
2.has a multiplier effect
3. shifts the aggregate supply curve to the right but this effect is likely more important in the long run.
4. all the above

Explanation / Answer

1. Option - 3 2. Option - 4 3. Option - 4