The Multiplier Effect of Changes in Government Transfers Is

question 38

Multiple Choice

The multiplier effect of changes in government transfers is:

• A)greater than the multiplier effect of a change in government spending.
• B)zero because transfer payments do not affect aggregate demand.
• C)less than the multiplier effect of a change in government spending.
• D)impossible to determine.

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Definitions:

Parol Evidence Rule

A legal principle that prevents parties in a contract dispute from presenting evidence of prior or contemporaneous agreements that would contradict the written terms of the contract.

Parol Evidence Rule

A legal principle that prevents parties in a dispute from presenting evidence of prior or contemporaneous agreements that contradict or modify the written terms of a final contract.

UCC 2-301

A provision under the Uniform Commercial Code (UCC) that emphasizes the importance of good faith in the performance or enforcement of contracts covered by the UCC.

Obligor

The party in a contractual agreement who is bound to provide a benefit or payment to another.