Which of the Following Best Describes the Simple Spending Multiplier

question 38

Multiple Choice

Which of the following best describes the simple spending multiplier?

• A)It shows the magnified change in planned aggregate spending that arises from a change in output.
• B)It shows the magnified change in equilibrium output demanded that arises from a change in income.
• C)It shows the magnified change in planned aggregate spending that arises from a change in equilibrium output.
• D)It shows the magnified change in equilibrium output demanded that arises from a given initial change in planned aggregate spending.
• E)It shows the change in planned aggregate spending that arises from a change in real output.

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Definitions:

Prefrontal Lobotomy

The severing or destruction of a section of the frontal lobe of the brain.

Antonio Egas Moniz

A Portuguese neurologist who was a pioneer in the development of cerebral angiography and lobotomy, for which he received the Nobel Prize in Physiology or Medicine in 1949.

Fritz Perls

A psychiatrist and psychotherapist known for developing Gestalt therapy, which emphasizes personal responsibility and living in the present moment.

Conditioning

A process of behavioral modification by which a subject comes to associate a desired behavior with a previously unrelated stimulus.