The Simple Multiplier,which Applies to Short-Run Situations in Which the Price

question 139

Multiple Choice

The simple multiplier,which applies to short-run situations in which the price level is constant,describes changes in

• A)investment induced by changes in equilibrium income.
• B)saving caused by changes in investment.
• C)the equilibrium level of national income caused by changes in autonomous expenditure.
• D)the rate of interest caused by increased demand for credit.
• E)employment induced by changes in equilibrium income.

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Definitions:

Entrepreneurial

Pertaining to the characteristics, behaviors, and practices of individuals who initiate, organize, and operate a business venture.

Asian American

A term referring to individuals in the United States who have Asian ancestry from countries within the continent of Asia.

Buying Patterns

The habitual or typical behaviors and preferences of consumers when making purchasing decisions.

Diversity

The inclusion of individuals representing more than one national origin, color, religion, socioeconomic stratum, sexual orientation, etc., in a group or organization.