The Aggregate Demand Multiplier Effect Says That an Initial Increase

question 139

Multiple Choice

The aggregate demand multiplier effect says that an initial increase in expenditure plans leads to an induced

• A)increase in consumption expenditure.
• B)increase in production expenditure.
• C)increase in government expenditures on goods and services.
• D)decrease in the price level.
• E)increase in exports.

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Definitions:

Annual Dividend

The total dividend payment a company distributes to its shareholders in a year, often quoted per share.

Growth

An increase in the value of an asset or company, often measured by revenue, profits, or size expansion.

Normal Growth

In stock pricing models, growth at a rate less than the rate of return. Growth rates in excess of the rate of return are super normal.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, typically with fixed dividends.