The Government-Purchases Multiplier Indicates How Much ______ Change(s) in Response

question 82

Multiple Choice

The government-purchases multiplier indicates how much ______ change(s) in response to a $1 change in government purchases.

• A) the budget deficit
• B) consumption
• C) income
• D) real balances

---

Definitions:

Disproportion In Value

This term does not correspond to a specific, widely recognized legal or financial principle. NO.

Consideration

In contract law, this is something of value that is exchanged between parties entering into a contract, essential for the agreement to be legally binding.

Gratuitous Promises

Promises made without expecting anything in return, often lacking legal enforceability unless supported by formalities like a deed.

Consideration

Something of value exchanged between parties in a contract, which is necessary for the agreement to be legally binding.