An Initial Increase in Government Spending of $100 Billion Can

question 35

Multiple Choice

An initial increase in government spending of $100 billion can create more than $100 billion through what economists call a(n) ________ effect.

• A) multiplier
• B) enhancement
• C) interest rate
• D) aggregate supply
• E) wealth

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Definitions:

Social Approval

concerns the positive acceptance or endorsement by others within a social group or society, often influencing individuals' behavior and decisions.

Incubation

Describes a period of nurturing, support, and development for new ideas, startups, or innovations to help them mature or succeed.

Punish Failure

Punish failure refers to the practice of imposing negative consequences on employees or teams for not achieving predefined objectives or standards.

Downsizing

The process of reducing the number of employees on the company's payroll as a means of cutting costs or restructuring the organization.