If the Change in Autonomous Investment Equals $1 Trillion and the Change

question 458

True/False

If the change in autonomous investment equals $1 trillion and the change in real GDP equals $4 trillion, the multiplier equals 1/4.

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Definitions:

Halo Effect

A cognitive bias where the perception of one positive characteristic influences the assumption of other positive traits in the same individual.

Sleeper Effect

A phenomenon where a message that initially has little impact becomes more persuasive over time, typically because of a delay in the message's perceived importance or credibility.

Psychological Reactance

An enthusiastic reaction towards proposals, persons, directives, or laws that intimidate or eradicate specified freedoms of behavior.

Sensory Overload

A condition where one experiences discomfort or incapacity to process the volume or intensity of incoming sensory information.