The Logic of the Multiplier Effect Applies

question 58

Multiple Choice

The logic of the multiplier effect applies

• A)only to changes in government spending.
• B)to any change in spending on any component of GDP.
• C)only to changes in the money supply.
• D)only when the crowding-out effect is sufficiently strong.

---

Definitions:

Achievement Motivation

A desire for significant accomplishment, for mastery of skills or ideas, for control, and for attaining a high standard.

Affiliation Motivation

A social motivation that drives individuals to want to belong to or be accepted by a group.

Rorschach Test

A psychological test in which subjects' perceptions of inkblots are recorded and analyzed using psychological interpretation.

Meaningless Inkblots

Images without inherent meaning used in psychological tests (e.g., Rorschach test) to explore the underlying thoughts, feelings, and patterns of perception of the individual.