In the Simple Macro Model,how Do Government Transfer Payments to Individuals

question 44

Multiple Choice

In the simple macro model,how do government transfer payments to individuals affect desired aggregate expenditure?

• A)directly
• B)through the consumption function
• C)through business investment
• D)through net exports
• E)through the government's budget deficit

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Definitions:

Mere Exposure Effect

A psychological phenomenon by which people tend to develop a preference for things merely because they are familiar with them.

Self-Fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true, due to positive feedback between belief and behavior.

Familiar Brand Name

A brand name that is well known among consumers, often because of extensive marketing or long-term presence in the market.

Mere Exposure Effect

A psychological phenomenon whereby people tend to develop a preference for things merely because they are familiar with them.