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A researcher calculated the risk-to-benefit ratio and concluded that no harmful effects were associated with a survey of college sophomores. The researcher was applying the principles of:
Multiplier Effect
The proportional amount of increase, or decrease, in final income that results from an injection, or withdrawal, of spending.
Fiscal Policy
The manipulation of economic activity through fiscal policies involving spending and taxation by a government.
Aggregate Demand
The cumulative demand for every service and product in an economic system, measured at an overall given price level for a specific time frame.
Marginal Propensity to Consume
The proportion of an increase in income that an individual or population spends on goods and services as opposed to saving.
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