Under What Circumstances Will the Multiplier Be Smaller,other Things Being

question 88

Multiple Choice

Under what circumstances will the multiplier be smaller,other things being equal?

• A)the larger the fraction of each dollar of disposable income spent on consumption
• B)the larger the fraction of each dollar of disposable income that is spent on imports
• C)the smaller the fraction of each dollar of disposable income that goes to saving
• D)the smaller the fraction of each dollar earned that goes to taxes

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Definitions:

Recollections

The action or faculty of remembering something.

Critical Thinking

is the intellectually disciplined process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and/or evaluating information gathered from, or generated by, observation, experience, reflection, reasoning, or communication.

Alternative Explanations

Different theories or reasons provided to account for certain observations or phenomena, offering multiple perspectives.

Argumentative

Characterized by or displaying the tendency to engage in or be prone to arguing or disputes.