The Multiplier Effect Indicates That

question 110

Multiple Choice

The multiplier effect indicates that

• A) a decline in the interest rate will cause a proportionately larger increase in investment.
• B) a change in spending will change aggregate income by a larger amount.
• C) a change in spending will increase aggregate income by the same amount.
• D) an increase in total income will generate a larger change in aggregate expenditures.

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Definitions:

Contact Hypothesis

A theory suggesting that under appropriate conditions interpersonal contact is one of the most effective ways to reduce prejudice between majority and minority group members.

Unequal Status

A relationship or situation where individuals or groups have different levels of power, privileges, or access to resources.

Antagonistic Groups

Groups that exhibit opposition, hostility, or competition towards each other within a social or organizational context.

Compromising

A conflict resolution strategy where parties involved make concessions to reach a mutually acceptable agreement.