When an Initial Spending Change Causes a Larger Change in Overall

question 1

Multiple Choice

When an initial spending change causes a larger change in overall output, this exemplifies:

• A) the multiplier effect.
• B) crowding out.
• C) the income effect.
• D) the substitution effect.

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Definitions:

Responsive

Quick to react or respond positively or sympathetically.

Undemanding

Referring to something or someone that does not require much effort, attention, or resources.

Electronic Media

Platforms or channels of communication based on electronic technology, including television, radio, and the internet.

Few Benefits

Limited advantages or positive aspects of a situation, often contrasting with expectations or needs.