The Basic Idea Behind the Multiplier Is That an Increase

question 120

Multiple Choice

The basic idea behind the multiplier is that an increase in

• A)GDP brings about an additional, larger increase in GDP.
• B)consumer spending causes a larger increase in investment spending.
• C)government spending causes a larger increase in tax revenues.
• D)spending will cause an even larger increase in equilibrium GDP.

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Definitions:

Obsessive-compulsive

Relating to a disorder characterized by recurring, intrusive thoughts (obsessions) and repetitive behaviors or mental acts that an individual feels driven to perform (compulsions).

Antisocial Personality

A type of chronic mental disorder where a person's way of thinking, perceiving situations, and relating to others is dysfunctional and destructive.

Psychopaths

Individuals with a personality disorder characterized by persistent antisocial behavior, impaired empathy and remorse, and bold, disinhibited, and egotistical traits.

Sociopaths

Individuals with a personality disorder characterized by persistent antisocial behavior, impaired empathy, and often a lack of remorse.