Which of the Following Would Make the Spending Multiplier Smaller

question 13

Multiple Choice

Which of the following would make the spending multiplier smaller?

• A)a reduction in marginal propensity to save
• B)a small initial trade deficit
• C)a reduction in the marginal propensity to import
• D)a real appreciation
• E) none of the above

---

Definitions:

TAT

Thematic Apperception Test, a projective psychological test in which subjects reveal their underlying motives, feelings, and attitudes by interpreting ambiguous images.

Reliable And Valid

Refers to the extent to which an assessment consistently measures what it is supposed to measure (reliability) and accurately measures what it's intended to measure (validity).

Conscious Awareness

The state of being aware of one's thoughts, feelings, and surroundings.

Repressed Experiences

Memories or emotions unconsciously blocked from conscious awareness, often because they are too distressful.