The Expenditure Multiplier Indicates That

question 33

Multiple Choice

The expenditure multiplier indicates that

• A) changes in investment, government, or consumption spending can trigger much larger changes in output.
• B) an increase in saving will cause output to rise by a multiple of the additional saving.
• C) a market economy will be more stable than classical economists thought.
• D) the marginal propensity to consume is greater than one.

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Definitions:

Hierarchy Culture

An organizational culture characterized by a structured setup where decisions follow a strict top-down approach, emphasizing control and defined roles.

Stability

is the state of being steady, consistent, and free from significant change or variation, often considered desirable in various contexts like economies, ecosystems, or personal lives.

Internal Focus

Refers to an organization's emphasis on its internal operations, processes, and employees, aiming to improve efficiency and work environment.

Competing Values Framework

A model used to assess and understand organizational culture by categorizing it into four quadrants based on flexibility, control, internal, and external focus.