The Multiplier Will Be Smaller, Other Things Being Equal

question 29

Multiple Choice

The multiplier will be smaller, other things being equal:

• A)the smaller the fraction of each dollar earned that goes to taxes.
• B)the smaller the fraction of each dollar of disposable income that is spent on imports.
• C)the smaller the fraction of each dollar of disposable income that goes to saving.
• D)All of the above are true.
• E)None of the above are true.

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Definitions:

German Invasion

Refers to military incursions by Germany, especially those during World War I and World War II.

Second World War

A global military conflict that took place between 1939 and 1945, involving most of the world's nations and resulting in significant shifts in the geopolitical landscape.

1939

A year marked by the beginning of World War II when Germany invaded Poland, causing a global conflict involving major world powers.

U.S. Military

The armed forces of the United States, responsible for defending the country against threats and providing military support to national policies.