The Multiplier Effect Means That

question 160

Multiple Choice

The multiplier effect means that

• A) consumption is typically several times as large as saving.
• B) a change in consumption can cause a larger increase in investment.
• C) an increase in investment can cause GDP to change by a larger amount.
• D) a decline in the MPC can cause GDP to rise by several times that amount.

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Definitions:

Food and Drug Administration

A federal agency of the United States Department of Health and Human Services responsible for protecting and promoting public health through the control and supervision of food safety, tobacco products, dietary supplements, prescription and over-the-counter medications, vaccines, biopharmaceuticals, blood transfusions, medical devices, electromagnetic radiation emitting devices, cosmetics, animal foods & feed, and veterinary products.

Abbreviation

A condensed version of a word or phrase, created to make writing and speaking more straightforward.

NPO

An instruction meaning "nil per os" or nothing by mouth, used to restrict oral intake of food and liquids, typically before surgery or certain medical tests.

Expiration Date

The date after which a product like food, medicine, or cosmetics is not recommended to be used.