The Various Studies of the Size of the Fiscal Multiplier

question 152

Multiple Choice

The various studies of the size of the fiscal multiplier by different economists suggest

• A) general agreement that the fiscal multiplier value is relatively high.
• B) general agreement that the fiscal multiplier value has a range between 0.8 and 1.2.
• C) general agreement that the fiscal multiplier value is zero.
• D) there is a wide range of opinion on the size of the fiscal multiplier.

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Definitions:

Gestalt Principle

A theory in psychology that proposes the human brain organizes visual elements into groups or unified wholes when certain principles are applied.

Visual World

The aspect of the environment that can be perceived visually, encompassing everything that is visible to the eye.

Johannes Müller

A 19th-century German physiologist known for his contributions to the doctrine of specific nerve energies, which suggests that the nature of a sensation depends on which sensory fibers are stimulated.

Doctrine of Specific Energies

A theory suggesting that the nature of a sensation depends on which sensory fibers are stimulated, not on how they are stimulated.