Which of the Following Is a True Statement About the Multiplier

question 298

Multiple Choice

Which of the following is a true statement about the multiplier?

• A)The multiplier rises as the MPC rises.
• B)The smaller the MPC, the larger the multiplier.
• C)The multiplier is a value between zero and one.
• D)The multiplier effect does not occur when autonomous expenditure decreases.
• E)The multiplier only applies to government spending.

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Definitions:

Collective Action

A process where individuals come together to achieve a common objective, often overcoming personal self-interest for the good of the community.

Ideal Type

A conceptual model used in sociology that describes a pure form of a given social phenomenon, serving as a standard against which real phenomena can be compared.

General Sociological

Relating to the broad, overarching study of social behavior, structures, and functions within a society.

Historical

Pertaining to the study, analysis, or representation of past events.