Assume There Is a Multiplier Effect, Some Crowding Out, and No

question 122

Multiple Choice

Assume there is a multiplier effect, some crowding out, and no accelerator effect. An increase in government expenditures changes aggregate demand more,

• A)the smaller the MPC and the stronger the influence of income on money demand.
• B)the smaller the MPC and the weaker the influence of income on money demand.
• C)the larger the MPC and the stronger the influence of income on money demand.
• D)the larger the MPC and the weaker the influence of income on money demand.

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Definitions:

Bony Feature

Distinctive skeletal structures or characteristics that are made of bone tissue.

Vertebra Prominens

The seventh cervical vertebra (C7) characterized by its long and prominent spinous process.

Hyoid Bone

A U-shaped bone in the neck that supports the tongue and provides attachment points for muscles associated with swallowing and speech.

Occipital Ridge

A ridge on the external surface of the occipital bone of the skull, important for muscle attachment and structural integrity.