The Multiplier Principle Explains How

question 172

Multiple Choice

The multiplier principle explains how

• A)any change in the economy has a one-time impact.
• B)$1 invested will increase GDP by more than $1.
• C)expenditures and incomes decrease as investment increases.
• D)$1 invested will decrease GDP by less than $1.

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Definitions:

Reduction

A chemical reaction involving the gain of electrons or the decrease in oxidation state by a molecule, atom, or ion.

Oxidizing Agent

A substance that has the ability to oxidize other substances, meaning it gains electrons in the process.

Reagents

Substances or compounds that are added to a system in order to bring about a chemical reaction or to see if a reaction occurs.

NaOCl

Sodium hypochlorite, commonly known as bleach, a chemical widely used as a disinfectant and bleaching agent.