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:

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that describes the body's short-term and long-term reactions to stress.

Allergic Reaction

An immune system response to a foreign substance that is not typically harmful to the body, such as pollen or certain foods.

Emergency Room

A medical treatment facility specializing in emergency medicine, the acute care of patients who present without prior appointment, either by their own means or by ambulance.

Reappraise

The process of reevaluating one's thoughts, feelings, or beliefs in light of new information or perspectives.