The Multiplier Principle Is Built on the Premise That One

question 78

Multiple Choice

The multiplier principle is built on the premise that one person's spending is another person's

• A)debt.
• B)obligation.
• C)income.
• D)saving.

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Definitions:

Commodity X

A placeholder name for a generic commodity or product in economic models or discussions.

Commodity Y

A generic placeholder term used to refer to any tradable item that satisfies wants or needs, but without specifying the item.

Marginal Rate of Substitution

The speed at which a consumer is prepared to exchange one product for a different one while keeping their level of satisfaction constant.

Snails

Slow-moving, gastropod mollusks with a spiral shell, some species of which are eaten as delicacy.