The Total Government Expenditure Multiplier Is Less Than One Because

question 65

Multiple Choice

The total government expenditure multiplier is less than one because

• A) labour supply reacts to interest rate changes and consumption demand is affected by taxes.
• B) investment demand falls dramatically when the government goes into debt.
• C) government expenditures affect labour demand.
• D) the marginal propensity to consume is greater than one.
• E) the marginal propensity to consume is less than one.

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Definitions:

Structured Text

A high-level programming language designed for industrial automation. It resembles the syntax of Pascal and is one of the five languages for programming PLCs.

Functional Block Diagram

A graphical representation that illustrates the functions and flow of data among different blocks of a system, highlighting the system's functional interactions.

Ladder Diagram

An industry standard for representing relay logic control systems. The diagram resembles a ladder because the vertical supports of the ladder appear as power feed and return buses and the horizontal rungs of the ladder appear as series and/or parallel circuits connected across the power lines.

Ladder Rung

A horizontal row in a ladder logic diagram, representing a condition leading to an outcome in programmable logic controllers (PLCs).