The Multiplier Effect Is Exemplified by the Multiplied Impact on

question 42

Multiple Choice

The multiplier effect is exemplified by the multiplied impact on

• A)the money supply of a given increase in government purchases.
• B)tax revenues of a given increase in government purchases.
• C)investment of a given increase in interest rates.
• D)aggregate demand of a given increase in government purchases.

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Definitions:

Witness

An individual who gives testimony or is called to testify in court because they have knowledge relevant to the case being tried.

Settlor

A settlor is the person who creates a trust by transferring assets into it, setting the terms and electing trustees to manage the trust assets for the benefit of the beneficiaries.

Creates

Refers to the act of bringing something into existence or producing something through a process.

Trust

A fiduciary arrangement that allows a third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries.