Which of the Following Best Describes the Simple Spending Multiplier

question 38

Multiple Choice

Which of the following best describes the simple spending multiplier?

• A)It shows the magnified change in planned aggregate spending that arises from a change in output.
• B)It shows the magnified change in equilibrium output demanded that arises from a change in income.
• C)It shows the magnified change in planned aggregate spending that arises from a change in equilibrium output.
• D)It shows the magnified change in equilibrium output demanded that arises from a given initial change in planned aggregate spending.
• E)It shows the change in planned aggregate spending that arises from a change in real output.

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Definitions:

Lone Pairs

Pairs of valence electrons not involved in bonding, but which occupy space around an atom, influencing molecular shape and reactivity.

Electronic Configuration

An arrangement of electrons in an atom or molecule in specific energy levels (orbitals) according to the principles of quantum mechanics.

Formal Charge

A theoretical charge on an atom in a molecule, calculated by assuming equal sharing of electrons in bonds.

Non-Bonding Electrons

Electrons in an atom that are not involved in bonding but occupy the outer electron shells or orbitals.