The Multiplier Principle Is Important Because It

question 98

Multiple Choice

The multiplier principle is important because it

• A) was central to economic theory before Keynes.
• B) implies that investment will help stabilize the economy.
• C) shows why small shifts in investment have a powerful influence on national income.
• D) illustrates why a small change in income causes a large change in saving.

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Definitions:

Berger

Peter L. Berger is a sociologist known for his work in the sociology of knowledge, understanding how societal beliefs and values are shaped and maintained.

Temporal Meanings

Concerning the concepts of time, including its measurement, perception, and significance in human life.

Afterlife

Beliefs about existence after death, varying widely across cultures and religions, often involving concepts of heaven, hell, reincarnation, or spiritual continuation.

Religious Rituals

Ceremonial acts prescribed by a religion that are performed to convey beliefs, values, and traditions.