The Multiplier Effect Following an Increase in Expenditure Is Generated

question 144

True/False

The multiplier effect following an increase in expenditure is generated by induced increases in consumption expenditure as income rises.

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Definitions:

Cohesive Groups

Groups that are unified with strong bonds and high levels of motivation due to the members' similarities, interactions, and shared goals.

Presence Of Others

The impact that the mere presence of other individuals can have on one's behavior, often influencing performance and decision-making.

Drive Or Arousal

Refers to the psychological and physiological states of alertness or excitement that motivate behavior.

Zajonc's Theory

A psychological theory suggesting that mere exposure to a stimulus can improve one's feelings toward it, indicating that emotional responses can be developed without prior cognitive processing.