When Government Spending Is Increased, the Amount of the Increase

question 380

Multiple Choice

When government spending is increased, the amount of the increase in aggregate demand primarily depends on

• A) the average propensity to consume.
• B) the size of the multiplier.
• C) income taxes.
• D) exchange rates.

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Definitions:

Contingent

Depending on something else that might or might not happen, often used to describe conditional situations or employment.

Contingency Approach

An approach to management that recognizes that there is no one best way to manage and that an appropriate management style depends on the demands of the situation.

Systematic Improvement

An organized method of identifying and implementing the best practices to enhance efficiency, quality, and outcomes.

Scientific Management

A management theory that advocates for the scientific study of work methods to improve efficiency and productivity by optimizing tasks and work processes.