Which of the Following Tends to Make Aggregate Demand Shift

question 89

Multiple Choice

Which of the following tends to make aggregate demand shift right farther than the amount that government expenditures increase?

• A) the crowding-out effect
• B) the multiplier effect
• C) the wealth effect
• D) the investment accelerator effect

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Definitions:

Myelin

A fatty substance that surrounds neurons' axons, helping to speed up the transmission of electrical signals in the nervous system.

Neurons

Electrically excitable cells in the nervous system that process and transmit information through electrical and chemical signals.

Neurotransmitters

Chemical messengers that transmit signals across the synaptic cleft from one neuron to another, influencing mental processes and behavior.

Axon

A long, slender projection of a nerve cell, or neuron, that typically conducts electrical impulses away from the neuron's cell body.