Which Term Refers to the Positive Feedback from Aggregate Demand

question 32

Multiple Choice

Which term refers to the positive feedback from aggregate demand to investment?

• A) investment multiplier
• B) catch-up effect
• C) investment accelerator
• D) crowding-in multiplier

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Definitions:

Redeem

To recover possession of something by paying a specified amount, or to fulfill a promise or obligation.

Default

Failure to fulfill an obligation, especially failure to meet a financial commitment or appear in a court of law.

Prepayment Penalty Clause

A provision in a contract that imposes a penalty on a borrower for paying off a loan before its maturity date.

Mortgage Loan

A mortgage is a loan that is secured by tangible real estate property, evidenced through a mortgage note that demonstrates both the loan's existence and the property's lien.