The Practical Significance of the Spending Multiplier Is That It

question 12

Multiple Choice

The practical significance of the spending multiplier is that it:

• A)brings about an equality of injections and withdrawals
• B)keeps inflation within tolerable limits
• C)magnifies initial changes in spending into larger changes in real output
• D)helps to stabilize the economy
• E)minimizes the unemployment rate

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Definitions:

Attracting

The process of drawing interest or causing someone or something to be drawn in, often used in the context of attracting talent or customers.

Retaining

The process of keeping something in possession or continuing to have something, such as employees or information.

Motivating

The process of encouraging or stimulating individuals or groups to achieve specific goals or perform at a higher level through various means, such as incentives, support, or recognition.

Lump Sum

A single payment made at a particular time, as opposed to smaller installments made over a period.