During Normal Times, the Multiplier Effect of an Increase in Government

question 10

Multiple Choice

During normal times, the multiplier effect of an increase in government spending financed by taxes will be

• A) strengthened, if the additional spending flows into sectors of the economy where the unemployment rates are low.
• B) weakened by an offsetting reduction in spending due to the higher taxes.
• C) unaffected, as long as the higher taxes are in the future.
• D) strengthened, if corporate tax rates are increased and personal tax rates remain unchanged.

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Definitions:

Public Law 94-142

A landmark legislation in the United States, also known as the Education for All Handicapped Children Act of 1975, which mandates a free and appropriate public education for all children with disabilities.

Inclusion

Educating a child with special educational needs full-time in the regular classroom.

Disability

A condition, either physical or mental, that restricts an individual's mobility, sensory functions, or ability to engage in activities.

Regular Classroom

A traditional educational setting where students of varying abilities and backgrounds are taught together.