If the Government Spending Multiplier Is 5 and Government Spending

question 29

Multiple Choice

If the government spending multiplier is 5 and government spending decreases by $200 billion, output will ________ by $________ billion.

• A) increase; 200
• B) decrease; 1,000
• C) decrease; 40
• D) decrease; 200

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Definitions:

Egocentrism

A cognitive trait where an individual is unable to distinguish between their own perspective and that of others, often seen in early childhood and adolescence.

Conservation

The understanding in child development that quantity does not change despite changes in form or appearance, also applies to environmental preservation efforts.

Assimilation

Assimilation refers to the cognitive process of integrating new information into existing frameworks or schemas.

Authoritative Style

A parenting approach characterized by high responsiveness and high demands, aiming to foster independence while maintaining limits and control.