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:

Test Statistic

A calculated value from sample data used to decide whether to reject the null hypothesis in hypothesis testing.

Degrees of Freedom

The quantity of distinct values or numbers that can be allocated to a statistical distribution.

Test Statistic

A calculated value from sample data used in hypothesis testing to determine whether to reject the null hypothesis.

Null Hypothesis

A statement that asserts no effect or no difference in the context of a statistical test, serving as the default assumption to be tested.