The Multiplier Effect Indicates That

question 120

Multiple Choice

The multiplier effect indicates that:

• A)a decline in the interest rate will cause a proportionately larger increase in investment.
• B)a change in aggregate expenditures will change aggregate income by a larger amount.
• C)a change in aggregate expenditures will increase aggregate income by the same amount.
• D)a small increase in total income will generate a large change in aggregate expenditures.

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Definitions:

Behaviors

The actions, reactions, or conduct of an individual, group, or system, often analyzed in psychological or sociological contexts.

Cooperation

The action or process of working together to the same end, often by sharing knowledge or tasks.

Persuasion

Persuading an individual to adopt a belief or take an action based on logical argumentation or discourse.

Rhetorical

Pertaining to the art of effective or persuasive speaking or writing, especially the use of figures of speech and other compositional techniques.