The Idea of the Spending Multiplier Is That

question 79

Multiple Choice

The idea of the spending multiplier is that:

• A) one person's spending becomes another person's income, which stimulates more spending.
• B) people spend money on some items, such as food and toiletries, multiple times.
• C) people tend to spend a greater amount in stores than they originally intended.
• D) when a person saves money in a bank, the bank lends it out to another person to be spent.

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Definitions:

Telegraphic Speech

A stage in language acquisition during which a child uses short, simple constructions, often lacking articles and auxiliary verbs.

Word Combinations

The process of forming phrases or sentences by putting words together according to the rules of grammar and syntax.

Unnecessary Words

Words in speech or writing that do not add significant meaning or value to the message being conveyed.

Sensorimotor Stage

The first stage in Piaget's theory of cognitive development, where infants learn about the world through their senses and actions.