The Accelerator Effect States That a Dollar Spent Will Contribute

question 28

True/False

The accelerator effect states that a dollar spent will contribute two or three dollars of activity to the economy.

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Definitions:

National Debt

The total amount of money that a country's government has borrowed, usually as a result of deficit spending.

Recession

A period of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in successive quarters.

Business Form

The legal structure of a company, such as sole proprietorship, partnership, or corporation, which determines liability and tax obligations.

Income

Earnings received by an individual or organization, often measured as net or gross, including wages, investment returns, and other sources.