The Simple Multiplier Applies

question 60

Multiple Choice

The simple multiplier applies:

• A)only when an inflationary gap exists.
• B)to shifts in the consumption and investment schedules.
• C)only to shifts in the investment schedule.
• D)only to shifts in the consumption schedule.

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Definitions:

Miserliness

An excessive desire to save money or spend as little as possible; extreme parsimony or stinginess.

Rationalization

A coping technique where disputable actions or emotions are rationalized in an apparently logical way to evade the actual reason behind them.

Financial Aid

Any form of funding that assists students in paying for their education, typically coming from various sources such as scholarships, grants, and loans.

Defense Mechanism

Mental tactics employed subconsciously to shield an individual from the distress caused by thoughts or emotions that are not acceptable.