The Practical Significance of the Multiplier Is That It

question 3

Multiple Choice

The practical significance of the multiplier is that it

• A)equates the real interest rate and the expected rate of return on investment.
• B)magnifies initial changes in spending into larger changes in GDP.
• C)keeps inflation within tolerable limits.
• D)helps to stabilize the economy.

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Definitions:

Bequeath

The act of leaving personal property to someone through a will.

Personal Representative

A personal representative is an individual appointed to administer the estate of a deceased person under a will or through a court process.

Nonprobate

Refers to assets or property that will pass to survivors by means other than a will, such as through trust or designated beneficiary.

Ambulatory

A term pertaining to the ability of a will to be changed by a testator.