When Expansionary Fiscal Policy Subsequently Increases Income and Consumer Spending,the

question 171

Multiple Choice

When expansionary fiscal policy subsequently increases income and consumer spending,the subsequent increase in AD is called the _____ effect.

• A) expansionary
• B) secondary
• C) multiplier
• D) crowding out

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Definitions:

Interest

The fee for borrowing funds or the reward for lending them, often stated as a percentage of the initial sum.

Furniture

Movable objects intended to support various human activities such as seating, eating, and sleeping.

Focal Date

A specific date used as a reference point for financial calculations, such as the valuation of an asset or the determination of an interest period.

Loan Date

The date on which a loan agreement is signed and the funds are disbursed to the borrower.