The Value of the Expenditure Multiplier in the Long Run

question 39

Multiple Choice

The value of the expenditure multiplier in the long run is

• A) 1
• B) 0
• C) -1
• D) equal to the MPC
• E) equal to the 1/MPC

Understand the relationship between attitudes and behaviors, including the distinction between public and private behaviors.

Understand the concept of learned helplessness and self-fulfilling prophecies.

Grasp the different types of cognitive biases and heuristics.

Recognize the impact of locus of control on individuals' perceptions and behaviors.

---

Definitions:

Biological Cycles

Natural rhythms in living organisms, such as circadian rhythms, that regulate physiological processes.

Reflexive Gasping

An automatic and involuntary intake of air, usually triggered by a lack of oxygen or a sudden shock, serving as a critical survival mechanism.

Vivid

Describes something strikingly bright or intense, either visually or in imagination, making it seem alive or realistically detailed.

Awareness

The state of being conscious of something, including the self, one's surroundings, or a particular concept.