The Idea That a $1 Increase in Infrastructure Spending Will

question 6

Multiple Choice

The idea that a $1 increase in infrastructure spending will generate more than $1 in economic growth is a representation of

• A) the multiplier effect.
• B) an outside lag.
• C) an inside lag.
• D) an automatic stabilizer.

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Definitions:

Customers' Preference

The inclination or predisposition of consumers towards certain products, services, or brands over others.

Blocking

A method used in experimental design to minimize the effects of nuisance variables by grouping units with similar characteristics.

Random Assignment

An experimental technique for assigning individuals to different groups in a study using randomization, ensuring that each participant has an equal chance of being assigned to any group.

Placebo

A safe medication or treatment recommended primarily for its mental comfort to the patient rather than its physical health benefits.