The Multiplier Effect States That There Are Additional Shifts in Aggregate

question 17

Multiple Choice

The multiplier effect states that there are additional shifts in aggregate demand from fiscal policy,because it

• A)reduces investment and thereby increases consumer spending.
• B)increases the money supply and thereby reduces interest rates.
• C)increases income and thereby increases consumer spending.
• D)decreases income and thereby increases consumer spending.

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Definitions:

Colonies

Territories under the political and economic control of another country, often established during periods of exploration and exploitation.

North American Slave Trade

The transatlantic trade that transported African peoples to North America primarily to serve as enslaved laborers, largely ending in the early 19th century though slavery itself was not abolished until later.

Events in Africa

Refers to significant historical, political, and cultural happenings that have taken place on the African continent.

Alienation

A condition of estrangement or detachment from one's surroundings, work, products of work, or self, often discussed in the context of social and economic conditions.