1) Under Keynesian theory, what is the relationship between an increase in government spending, net of any required increase in taxes, and its influence on GDP? a) As government spending increases, GDP decreases. b) As government spending increases, GDP remains the same. c) As government spending increases, GDP increases. d) There is not enough information to determine this relationship. 2) What is the major difference between depository and nondepository financial intermediaries and how is this difference recorded on their balance sheets? a) Depository financial intermediaries must hold cash reserves against their liabilities resulting in an account that is recorded on their liability side of the balance sheet, while nondepository financial intermediaries do not have this requirement. b) Nondepository financial intermediaries must hold cash reserves against their liabilities resulting in an account that is recorded on their liability side of the balance sheet, while depository financial intermediaries do not have this requirement c) Depository financial intermediaries must hold cash reserves against their assets resulting in an account that is recorded on their assets side of the balance sheet, while nondepository financial intermediaries do not have this requirement. d) Nondepository financial intermediaries must hold cash reserves against their assets resulting in an account that is recorded on their assets side of the balance sheet, while depository financial intermediaries do not have this requirement. 3) What would be the multiplier effect on output if investment spending were to decrease by Billion and the marginal propensity to consume is 0.3