The Practical Significance of the Multiplier Is That It

question 69

Multiple Choice

The practical significance of the multiplier is that it

• A) equates the real interest rate and the expected rate of return on investment.
• B) magnifies initial changes in spending into larger changes in GDP.
• C) keeps inflation within tolerable limits.
• D) helps to stabilize the economy.

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Definitions:

Negative Emotions

Emotions that are typically associated with unpleasant feelings or experiences, such as sadness, anger, fear, and frustration.

Positive Emotions

Feelings that are enjoyable and bring happiness, such as joy, contentment, and love, which can improve well-being and social interactions.

Effective Recency

The phenomenon where more recently learned information is recalled more effectively than older information.

Interference

A phenomenon in memory where the learning of new information hampers the ability to recall previously learned information.