If Households Spend $0

question 36

Multiple Choice

If households spend $0.40 of each additional dollar of increased income,the expenditure multiplier will be

• A) 1.67.
• B) 2.5.
• C) 4.
• D) 6.

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Definitions:

Combative

Exhibiting readiness or eagerness to fight or be aggressive.

Deindividuation

A psychological state characterized by reduced self-awareness and diminished social identity, leading to uninhibited and sometimes antisocial behavior.

Validity Effect

The tendency to believe information is correct or valid simply because it has been repeated many times.

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting cognitions (beliefs, attitudes, or behaviors).