The Practical Significance of the Multiplier Is That

question 338

Multiple Choice

The practical significance of the multiplier is that

• A)it helps to stabilize the economy.
• B)it keeps inflation within tolerable limits.
• C)it magnifies relatively small changes in spending into larger changes in GDP.
• D)it brings about a reduction of MPC.

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Definitions:

Take-It-Or-Leave-It BASIS

A take-it-or-leave-it basis refers to a situation where an offer is made with the understanding that no negotiation will be entertained, forcing the recipient to accept the offer in its entirety or reject it.

Opposed to Public Policy

Activities or agreements that are considered illegal because they violate the ethics or morals of a society.

Mayoral Campaign

A strategic effort undertaken by a candidate to promote themselves in a bid to be elected as mayor of a municipality.

Unenforceable

Describes a contract or clause that, due to certain legal deficiencies, cannot be legally compelled to be followed or executed.