How Do the Multiplier Effect and the Crowding-Out Effect Change

question 123

Multiple Choice

How do the multiplier effect and the crowding-out effect change the consequences of an increase in government spending?

• A) They both amplify the consequences.
• B) They both diminish the consequences.
• C) The multiplier effect diminishes the consequences, while the crowding-out effect amplifies the consequences.
• D) The multiplier effect amplifies the consequences, while the crowding-out effect diminishes the consequences.

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Definitions:

Typical 3-Month-Old

Refers to the common developmental milestones of a 3-month-old infant, such as smiling, cooing, and beginning to reach for objects.

Imitative Behavior

The act of mimicking or replicating someone else's actions, often a mechanism for learning or social bonding.

Infant Intelligence

The capacity of infants to learn, understand, and interact with their environment.

Individual Differences

Variations among individuals in qualities or attributes, including cognitive, emotional, and physical characteristics.