The Multiplier Helps Explain

question 281

Multiple Choice

The multiplier helps explain

• A) why a rise in government expenditures causes real Gross Domestic Product (GDP) to rise by more than the amount of the increase in government spending.
• B) why an increase in disposable income causes real Gross Domestic Product (GDP) to rise by less than the amount of the increase in disposable income.
• C) why a decrease in taxes causes real Gross Domestic Product (GDP) to fall by more than the amount of the decrease in taxes.
• D) why a fall in investment cause real Gross Domestic Product (GDP) to rise by more than the amount of the decrease in investment.

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Definitions:

Neuroticism

A personality trait characterized by a tendency to experience negative emotions such as anxiety, anger, or depression more easily than others.

Discrepancy Detection

Noticing something that is different in the environment.

Circadian Rhythms

Biological processes that display an endogenous, entrainable oscillation of about 24 hours, affecting physical, mental, and behavioral changes.

Signal Activation

The process of initiating or triggering a response through a specific signal, often used in the context of communication or biological systems.