The Basic Idea Behind the Multiplier Is That an Increase

question 120

Multiple Choice

The basic idea behind the multiplier is that an increase in

• A)GDP brings about an additional, larger increase in GDP.
• B)consumer spending causes a larger increase in investment spending.
• C)government spending causes a larger increase in tax revenues.
• D)spending will cause an even larger increase in equilibrium GDP.

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Definitions:

Physiological

Relating to the normal functioning of living organisms and their parts, including all physical and chemical processes.

Maladaptive

Behaviors or actions that are counterproductive to an individual's well-being or ability to meet their needs or goals.

Constructive Coping

Strategies or mechanisms that individuals use to handle stress, manage their emotions, and solve problems effectively and healthily.

Retail Therapy

The act of shopping as a way to improve mood or relieve stress.