Imagine That the Government Increases Its Spending by $75 Billion

question 78

Multiple Choice

Imagine that the government increases its spending by $75 billion.Which of the following by itself would tend to make the change in aggregate demand different from $75 billion?

• A)both the multiplier effect and the crowding-out effect
• B)the multiplier effect,but not the crowding-out effect
• C)the crowding-out effect,but not the multiplier effect
• D)neither the crowding out effect nor the multiplier effect

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Definitions:

Psychoanalytic Therapy

A therapeutic approach developed by Freud that seeks to explore unconscious conflicts and desires, aiming to understand and resolve psychological issues.

Encounter

A moment of interaction between individuals which can be significant in terms of personal development, conflict resolution, or understanding.

Support

Assistance, encouragement, or other resources provided to help individuals deal with difficulties or achieve their goals.

Gestalt Therapy

A form of psychotherapy that emphasizes personal responsibility and focuses on the individual's experience in the present moment, the therapist–client relationship, the environmental and social contexts of a person's life, and the self-regulating adjustments people make as a result of their overall situation.