Which Term Refers to the Positive Feedback from Aggregate Demand

question 32

Multiple Choice

Which term refers to the positive feedback from aggregate demand to investment?

• A) investment multiplier
• B) catch-up effect
• C) investment accelerator
• D) crowding-in multiplier

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Definitions:

Simplify

Making a complex numerical or algebraic expression easier to handle by reducing it to a more basic form.

Square Root Property

A mathematical rule stating that if \(x^2 = a\), then \(x = \pm\sqrt{a}\), which is used to solve quadratic equations.

Equation

A mathematical statement that asserts the equality of two expressions, typically written in the form \(A = B\), where \(A\) and \(B\) are expressions.

Complex Solutions

Solutions to equations that include imaginary numbers, often involving the square root of a negative number.