An Economic Effect Whereby an Increase in Spending (For Example

question 30

Multiple Choice

An economic effect whereby an increase in spending (for example, of funds provided to a country by a donor) produces an increase in national income and consumption greater than the initial amount spent is called the

• A) untied aid.
• B) multiplier effect.
• C) export-led growth effect.
• D) network effect.

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Definitions:

Inventory

The total amount of goods and materials a business holds for the ultimate goal of resale or production.

GDP

Gross Domestic Product, a measure of the economic output of a country, considered by calculating the total value of all final goods and services produced within that country over a specified period.

Disposable Personal Income

The total income households have after taxes and other deductions, available for spending, saving, or investment.

Non-tax Payments

Fees or charges paid to the government that are not considered taxes, such as fines, licenses, or charges for public services.