If the Investment Accelerator from an Increase in Government Purchases

question 12

Multiple Choice

If the investment accelerator from an increase in government purchases is larger than the crowding-out effect,then

• A)the multiplier is probably zero.
• B)the multiplier is probably equal to one.
• C)the multiplier is probably greater than one.
• D)the multiplier is probably less than one.

---

Definitions:

Sociocultural Perspective

A psychological approach that emphasizes the influence of societal and cultural factors on individual behavior and mental processes.

Psychodynamic Perspective

A psychological approach that emphasizes the systematic study of the psychological forces that underlie human behavior, feelings, and emotions and how they might relate to early experience.

Cognitive Perspective

An approach in psychology that emphasizes the importance of mental processes in how people perceive, remember, think, and solve problems.

Learning Perspective

A theoretical viewpoint that emphasizes the role of experience and learning in shaping behavior.