The Size of the Spending Multiplier Increases From

question 35

Multiple Choice

The size of the spending multiplier increases from:

• A) an increased response of consumption to a change in income.
• B) a decreased response of consumption to a change in income.
• C) an increase in the income tax rate on marginal income.
• D) an increase in consumer purchases of imports to a change in income.

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Definitions:

Group Members

Individuals who belong to a specific social group or organization sharing common goals, interests, or identities.

Social Influence

Group impact on others’ decisions.

Commodification

Commodification is the transformation of goods, services, ideas, or people into commodities or objects of trade, often emphasizing the market value over other values.

Internalization

The psychological process through which individuals absorb and integrate the values, beliefs, and norms of society into their own behavior.