The Numerical Value of the Spending Multiplier Is Smaller The

question 4

Multiple Choice

The numerical value of the spending multiplier is smaller the:

• A)larger the marginal propensity to consume
• B)larger the marginal propensity to withdraw
• C)greater the change in the price level that follows a spending change
• D)greater the change in the interest rate in the economy
• E)greater the change in government purchases in the economy

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Definitions:

Nutritive Value

Refers to the nutritional content of a food item, including vitamins, minerals, proteins, and calories it provides.

Sodium

A chemical element, symbol Na, essential for human health, playing a critical role in nerve function and fluid balance.

Hospitalized Toddler

Refers to a young child, typically between one to three years old, who is receiving medical care and treatment in a hospital setting.

Plastic Lego

A type of interlocking plastic brick used for building various structures, known for its creativity-enhancing play.