The Size of the Spending Multiplier Increases From

question 35

Multiple Choice

The size of the spending multiplier increases from:

• A) an increased response of consumption to a change in income.
• B) a decreased response of consumption to a change in income.
• C) an increase in the income tax rate on marginal income.
• D) an increase in consumer purchases of imports to a change in income.

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Definitions:

Older Adults

Individuals in a late stage of life, often considered to be those aged 65 and older, who may face unique health challenges and life circumstances.

Mild Cognitive Impairment

A condition involving slight but noticeable and measurable decline in cognitive abilities, including memory and thinking skills, which is not severe enough to impair daily life dramatically.

Neurocognitive Disorder

Impairments in cognitive function due to alterations in the brain, affecting memory, attention, learning, and problem-solving.

Normal Aging

A normal process of bodily systems slowing down that ultimately causes some systems to stop functioning, so that the person dies of old age rather than of any particular disease.