If the Economy Is in the Expansion Phase of a Business

question 129

Multiple Choice

If the economy is in the expansion phase of a business cycle and investment increases,when the multiplier effect kicks in,the expansion

• A)reverses.
• B)is not affected.
• C)picks up speed.
• D)slows down.
• E)peaks.

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Definitions:

Comparison Effect

The phenomenon where an individual's evaluation of their own abilities, achievements, or conditions is influenced by comparisons with others.

Mere Exposure Effect

The mere exposure effect is a psychological phenomenon by which people tend to develop a preference for things merely because they are familiar with them.

Informational Social Influence

"The influence other people have on us because we want to be right."

Principle Of Proximity

A principle in psychology that suggests objects or shapes that are close to one another appear to form groups.