If Households Spend $0

question 23

Multiple Choice

If households spend $0.75 of each additional dollar of increased income,the expenditure multiplier will be

• A) 1.33.
• B) 4.
• C) 5.
• D) 7.5.

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Definitions:

Tort Liability

Legal responsibility arising from a civil wrong that causes harm or loss to an individual or property, not based on contracts.

Illegal Agreements

Contracts or arrangements that are prohibited by law and thus are not enforceable by the judicial system.

Noncompetition Clause

A contract provision that prohibits a party from engaging in similar business or trade in competition against another party.

Liability Waiver

A legal document in which a person agrees to relinquish the right to sue or claim against another party in case of injury or damage.