Due to the Multiplier Effect,a Decrease in Investment Spending

question 180

Multiple Choice

Due to the multiplier effect,a decrease in investment spending

• A) is greater than the resulting decrease in GDP
• B) has a minimal impact on the economy
• C) causes the money supply to increase
• D) leads to an even larger decrease in output
• E) results in increased autonomous consumption

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Definitions:

Continental Rifts

Large-scale geological features that form when tectonic plates in the Earth's crust move apart, leading to the formation of new ocean basins or rift valleys.

Continental Crust

The thick part of the Earth's crust that forms the continents and continental shelves, characterized by a composition distinct from that of the oceanic crust.

Hot Conditions

Environmental or atmospheric situations characterized by high temperatures, often affecting living conditions and climate patterns.

Deep

Having a large distance to the bottom from the surface or a significant extent downward.