The Multiplier Process Can Occur When a Decrease in Investment

question 138

Multiple Choice

The multiplier process can occur when a decrease in investment spending

• A)Increases household saving,causing consumers to buy more goods and services.
• B)Reduces household incomes,causing consumers to buy fewer goods and services.
• C)Increases household incomes,causing consumers to buy fewer goods and services.
• D)Reduces household incomes,causing consumers to buy more goods and services.

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Definitions:

Lease

A contract granting use or occupancy of property during a specified period in exchange for a specified rent or other terms.

Corporate Objective

The goals or plans that a corporation aims to achieve, which guide its operational and strategic decisions.

Shareholders

Individuals or entities that own one or more shares of stock in a public or private corporation, thereby having a financial stake in the company's performance.

Respondeat Superior

A law principle stating that an employer or a principal is legally liable for the improper actions of an employee or agent, provided those actions took place during the course of their employment or agency.