The Multiplier Effect Suggests That

question 111

Multiple Choice

The multiplier effect suggests that:

• A) a ripple effect occurs from one person's initial spending.
• B) spending $1 will create more than a $1 increase in GDP.
• C) a tax cut will increase GDP by more than the amount of the initial tax cut.
• D) All of these are true.

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Definitions:

Independence

The state or quality of being self-sufficient and not dependent on external support or control.

Stress Tolerance

The ability to cope with stress in a healthy way, allowing an individual to face challenging situations without losing efficacy.

Emotional Intelligence

The capacity to be aware of, control, and express one's emotions, and to handle interpersonal relationships judiciously and empathetically.

Risky Behaviors

Actions that involve potential exposure to harm or loss.