The Spending Multiplier Is

question 20

Multiple Choice

The spending multiplier is

• A) a formula to determine the total impact on savings from an initial change of a given amount.
• B) a formula to determine the total impact on consumption from an initial change of a given amount.
• C) only used when government spending increases.
• D) a formula to determine the total impact on spending from an initial change of a given amount.
• E) only used when government spending decreases.

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Definitions:

Persuasion

The act of convincing someone to do something or to adopt a certain belief through argument, appeal, or rational discussion.

Elaboration Likelihood Model

A theory in social psychology that explains different ways of processing stimuli, why and when they will lead to attitude change.

Counter-Arguments

Arguments presented to oppose or refute another argument or position, often used in debate or in the formulation of academic papers.

Persuasiveness

The ability to convince others to change their attitudes, beliefs, or actions through argumentation or appeal.