Question

Keystone XL pipeline-Alberta to the Gulf of Mexico TransCanada says building the 57 bilion pieline Explain how TransCanada's investment of S7 bilion could create spin-ofl jobs and pump $20 billion into the U.S economy TransCanada's investment of $7 bilion could create spin-off jobs and pump $20 billion into the US economy because A. new employees spend their incomes on consumption goods and services, creating spin-offjobs and more production would put 20.000 Americans directly to work during the construction phase and add an B. potential GDP will increase by $7 billion, which induces an increase in aggregate demand O C. TransCanada estimates that the multiplier is 3 5 ○ D. TransCanada estimates that mapier is lessthan Clck to select your answer Type here to search

Answer 1

Transcanada's investment of $7 billion could create spin off jobs and pumps 20 billion into the US economy because  new employees spend their income on consumption of goods and services, creating spin off jobs and more production

Ans is a) new employees spend their income on consumption of goods and services, creating spin off jobs and more production

Estimated multiplier ;

7*m = 20

m = 20/7 = 2.86( approximately)

so option c) and d) is false.

Option b) is also incorrect as aggregate demand does not increase if potential GDP increases.

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