The Multiplier Effect

question 247

Multiple Choice

The multiplier effect

• A) generates instability in autonomous expenditure.
• B) promotes stability of the general price level.
• C) magnifies small changes in spending into larger changes in real GDP.
• D) increases the MPC.

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Definitions:

Egocentric

Having or regarding oneself as the center of all interests and perspectives, often ignoring others' viewpoints.

Sky Is Blue

A statement describing the appearance of the Earth's sky in clear conditions due to the scattering of sunlight by the atmosphere.

Centration

A cognitive limitation in early childhood development where a child focuses only on one aspect of an object or situation, overlooking others.

Thought Causes

This term is not standard in psychological or medical literature and requires clarification; thus, no definition can be provided.