The Multiplier Effect Means That

question 52

Multiple Choice

The multiplier effect means that:

• A)consumption is typically several times larger than withdrawals
• B)an increase in consumption can result in a larger increase in government purchases
• C)an increase in spending can cause aggregate demand to change by a larger amount
• D)a small decline in MPC can cause aggregate demand to rise by several times that amount
• E)an increase in consumption leads to a larger increase in investment

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Definitions:

Fraternal Twins

are siblings born simultaneously during the same pregnancy, sharing about 50% of their genes, but are not genetically identical, stemming from two different eggs fertilized by two different sperm.

Sexual Orientation

A person's emotional, romantic, or sexual attraction to others, typically categorized as heterosexual, homosexual, bisexual, etc.

Mating Preferences

Criteria or choices individuals make, often subconsciously, regarding potential partners based on evolutionary, cultural, and personal factors.

Evolutionary Account

An explanation of how a species has changed and adapted over time through natural selection and other evolutionary processes.