Because of the Multiplier, a One-Time Change in Expenditure Will

question 132

Multiple Choice

Because of the multiplier, a one-time change in expenditure will

• A) have little secondary effect on real GDP.
• B) expand real GDP by an infinite amount.
• C) generate more additional real GDP than the initial change in expenditure.
• D) decrease saving and investment activity and thereby decrease future real GDP.

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Definitions:

Frontal Lobes

The front part of the brain associated with complex cognitive functions, including planning, reasoning, and impulse control.

Stem Cells

Cells with the potential to develop into many different types of cells in the body and serve as a repair system.

Neural Structures

Neural structures refer to the various physical formations of the nervous system, including the brain, spinal cord, and peripheral nerves, which are involved in processing and transmitting information throughout the body.