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:

Nonverbal Information

The use of body language, facial expressions, gestures, posture, and eye contact to convey messages without spoken words.

Explicitly

Stated clearly and in detail, leaving no room for confusion or interpretation.

Androgynous

A blend of masculine and feminine characteristics in a person's appearance, behavior, or identity.

Masculine

Traits or characteristics culturally or socially associated with men or male behavior, including attributes like strength, assertiveness, and leadership.