Page 97 - Macroeconomics. book docx_Neat

Answer: A

Q13. If MPC increases, the multiplier will:

A. Decrease

B. Remain unchanged

C. Become zero

D. Increase

Answer: D

Q14. Which of the following can increase investment in an economy?

A. Higher taxes
B. Lower interest rates

C. Higher unemployment

D. Lower income

Answer: B

Q15. If investment increases by 50 and the multiplier is 4, income will increase by:

A. 50
B. 100

C. 200

D. 250

Answer: C

True or False Statements

Investment includes spending on machines and buildings. → True

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