At Each Round of the Multiplier Process, Increases in Income

question 62

Multiple Choice

At each round of the multiplier process, increases in income:

• A)leak out of the expenditures stream in the form of investment and taxes.
• B)leak out of the expenditures stream in the form of saving and imports.
• C)are matched by a smaller increase in expenditures.
• D)result in even greater increases in expenditures due to investment and exports.
• E)result in no change in total expenditures.

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Definitions:

Work Ethic

A set of values centered on the importance of working hard and demonstrating diligence, reliability, and responsibility in one’s job.

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Individuals who have been granted the right to live permanently and work in a country other than their own, in accordance with that country's immigration laws.

India

A country in South Asia, known for its diverse culture, languages, geography, and as the world's largest democracy.

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A country in East Asia, officially known as the Democratic People's Republic of Korea, known for its totalitarian government and isolation from much of the international community.