The Spending Multiplier Is the Ratio of the Change in Real

question 20

Multiple Choice

The spending multiplier is the ratio of the change in real GDP to

• A)a shift in the expenditure line.
• B)a movement along the expenditure line.
• C)a shift in the 45-degree line.
• D)a change in marginal propensity to consume.
• E)a change in potential GDP.

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Definitions:

Bruises

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Internal Control

Processes adopted by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Account Reconciliation

The process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement.

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A multicolumn form that is used to record payroll data.