The Logic of the Multiplier Effect Applies

question 58

Multiple Choice

The logic of the multiplier effect applies

• A)only to changes in government spending.
• B)to any change in spending on any component of GDP.
• C)only to changes in the money supply.
• D)only when the crowding-out effect is sufficiently strong.

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Definitions:

Parent Country

The nation where a multinational company is headquartered or originally established.

Host Country

The country in which a multinational company operates a facility or office outside of its home country.

Third Country

A nation other than the two primarily involved in a transaction or event, often used in the context of diplomatic relations or international business.

Criteria

Standards, rules, or tests by which something can be judged or decided.