If the Value of the Multiplier Is Smaller, the Economy

question 21

Multiple Choice

If the value of the multiplier is smaller, the economy

• A)becomes less stable because automatic stabilizers have a larger impact.
• B)becomes more stable because automatic stabilizers have a larger impact.
• C)becomes more volatile because automatic stabilizers have a lesser impact.
• D)is subject to larger fluctuations because automatic stabilizers have no impact.

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Definitions:

Proportion

A statistical measure that reflects the fraction or percentage of the total number of cases that fall within a particular category.

Statistic

A characteristic or measure obtained from a sample of data to estimate a population parameter.

Sampling Distribution

The likelihood distribution of a statistic, achieved by drawing numerous samples from a certain population.

Spread

In statistics, it refers to the range of a data set, which shows the extent to which numerical values differ from each other.