Which of the Following Reduces the Magnitude of the Expenditure

question 54

Multiple Choice

Which of the following reduces the magnitude of the expenditure multiplier?

• A) higher marginal tax rates
• B) decrease in imports
• C) decrease in saving
• D) decrease in government purchases of goods and services
• E) decrease in the marginal propensity to consume

---

Definitions:

Meristematic Cells

Undifferentiated cells in plants that are capable of division and contribute to plant growth, found in regions like the tips of roots and shoots.

Root Cap

A covering of cells over the root tip that protects the delicate meristematic tissue directly behind it.

Root Tip

The extreme end of a root in a plant, involved in growth and absorption of water and nutrients from the soil.

Tracheids

Long, thin cells found in the xylem of nearly all vascular plants that function in water transport and support.