Investment, as defined for calculating GDP, consists of only two components: business spending on plant and equipment and unsold inventories

Suppose Good A is a normal good. Which of the following will increase the demand for Good A?

A) an increase in the price of its substitutes B) a lower expected future relative price of A C) an increase in the price of its complements D) a decrease in income

At each round of the multiplier process, increases in income:

a. leak out of the expenditures stream in the form of investment and taxes. b. leak out of the expenditures stream in the form of saving and imports. c. are matched by a smaller increase in expenditures. d. result in even greater increases in expenditures due to investment and exports. e. result in no change in total expenditures.