The Multiplier Effect Is The

question 175

Multiple Choice

The multiplier effect is the:

• A) subsequent consumer spending that increases AD from expansionary fiscal policy.
• B) subsequent consumer spending that increases AD from contractionary fiscal policy.
• C) increase in GDP from an increase in the money supply and decrease in taxes.
• D) increase in GDP from increased consumer savings and private investment.

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Definitions:

Automatization

The process by which skills and procedures are performed with little conscious effort, often through repetition and practice, becoming automatic or habitual.

Strategic Choice

The decision-making process in which individuals or organizations select among various options to achieve specific objectives.

Declarative Memory

A type of long-term memory that involves the recall of specific facts and events that can be verbally conveyed.

Procedural Memory

Procedural memory is a type of long-term memory concerned with the acquisition of motor skills and habits, enabling individuals to perform tasks without conscious thought.