Economists Refer to the Series of Induced Increases in Consumption

question 266

Multiple Choice

Economists refer to the series of induced increases in consumption spending that result from an initial increase in autonomous expenditures as the ________ effect.

• A)multiplier
• B)expenditure
• C)consumption
• D)aggregate demand

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Definitions:

Reference Groups

Social groups that individuals look to as a basis for self-assessment or as a source of personal standards.

Self-Appraisal

A process by which an individual evaluates his or her own performance, strengths, and weaknesses.

Personal Standards

The individual beliefs and values that guide behavior and decision-making practices.

Net Promoter Score

A metric used to gauge the loyalty of a firm's customer relationships, based on how likely customers are to recommend the company's product or service to others.