The Multiplier Effect Exists Because a Change in Autonomous Expenditure

question 347

Multiple Choice

The multiplier effect exists because a change in autonomous expenditure

• A) leaves the economy in the form of imports.
• B) leads to changes in income, which generate further spending.
• C) prompts further exports.
• D) will undergo its complete effect in one round.

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Definitions:

Stanford Prison Experiment

A 1971 psychological study of the human response to captivity, in which participants were randomly assigned roles of prisoners or guards.

Zimbardo

Refers to Philip Zimbardo, a psychologist best known for his Stanford prison experiment that studied the psychological effects of perceived power.

Personal Responsibility

The idea that individuals are accountable for their actions and decisions in life, embodying the concept that one has a duty to manage their own behavior and well-being.

Authority

The power or right to give orders, make decisions, and enforce obedience, often derived from one's position or experience.