The Notion That When the Government Increases Its Purchases of Aeroplanes

question 12

Multiple Choice

The notion that when the government increases its purchases of aeroplanes, the owners and employees of the aeroplane manufacturing companies will also purchase more as their incomes rise, and hence total purchases will increase by more than the initial change in government purchases, is known as the:

• A)crowding-out effect
• B)Keynesian effect
• C)multiplier effect
• D)acceleration effect

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Definitions:

Linear Inequality

An algebraic inequality in which each term is either a constant or the product of a constant and a single variable.

Space Constraint

A limitation or restriction on the available space for a particular purpose or operation.

Floor Space

The total area taken up by all of the rooms or sections on one level of a building.

Linear Inequality

An algebraic inequality that shows the relationship between variables that form a straight line when graphed.