The Multiplier Principle Explains How

question 18

Multiple Choice

The multiplier principle explains how

• A)any change in the economy will be magnified.
• B)$1 invested will increase GDP by more than $1.
• C)expenditures and incomes increase as investment increases.
• D)All of the above are correct.

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Definitions:

Universal Helplessness

A theory suggesting a belief in being unable to control or influence outcomes in most or all areas of life, leading to a state of passive resignation.

Specific Attributions

The process of assigning a cause to a particular behavior or event, focusing on factors unique to that specific situation.

Fundamental Attribution Error

The tendency for observers to underestimate situational influences and overestimate dispositional characteristics when explaining others' behaviors.

Stable Internal Characteristics

Traits or attributes within an individual that are enduring and consistent across different situations and over time.