The Reason the Multiplier Is Greater Than 1 Is That

question 260

Multiple Choice

The reason the multiplier is greater than 1 is that

• A)income is re-spent.
• B)workers are capable of increasing their production when they have to.
• C)the marginal propensity to save is 1.
• D)none of the choices are correct.

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Definitions:

Fixed Mindset

The belief that one's abilities, intelligence, and talents are fixed traits, leading individuals to avoid challenges and not develop their potential.

Growth Mindset

The belief that abilities and intelligence can be developed through dedication and hard work.

Disengagement

The process of withdrawing or detaching oneself emotionally, mentally, or physically from a task, role, or relationship.

Competence Stage

The phase in skill development where an individual has gained sufficient knowledge and ability to perform tasks reliably but not yet effortlessly.