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:

Motive

Need or desire that energizes and directs behavior toward a goal.

Emote

To express emotion or feelings in a very noticeable way.

Cannon-Bard Theory

A theory of emotion that proposes that emotions and bodily changes occur simultaneously, in contrast to theories that suggest emotions are a result of bodily reactions.

James-Lange Theory

A theory suggesting that emotions occur as a result of physiological reactions to events.