Imagine That the Government Increases Its Spending by $75 Billion

question 78

Multiple Choice

Imagine that the government increases its spending by $75 billion.Which of the following by itself would tend to make the change in aggregate demand different from $75 billion?

• A)both the multiplier effect and the crowding-out effect
• B)the multiplier effect,but not the crowding-out effect
• C)the crowding-out effect,but not the multiplier effect
• D)neither the crowding out effect nor the multiplier effect

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Definitions:

Secondary Appraisal

The evaluation of one's ability to cope with the consequences of an encountered stressful event, following an initial assessment of the event's significance.

Stress

A physical, mental, or emotional strain or tension resulting from adverse or demanding circumstances.

Susan Folkman

A psychologist known for her research on stress, coping, and appraisal.

Moderate Exercise

Physical activity that is of moderate intensity, beneficial for health, and includes activities like brisk walking.