Suppose the Multiplier Has a Value That Exceeds 1,and There

question 33

Multiple Choice

Suppose the multiplier has a value that exceeds 1,and there are no crowding out or investment accelerator effects.Which of the following would shift aggregate demand to the right by more than the increase in expenditures?

• A)an increase in government expenditures
• B)an increase in net exports
• C)an increase in investment spending
• D)All of the above are correct.

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Definitions:

Rapid Eye Movement

A phase of sleep characterized by quick, random movements of the eyes, associated with dreaming and increased brain activity.

Frequent Nightmares

Recurring distressing dreams that often awaken the sleeper, typically associated with negative emotions.

Anxiety And Depression

A combination of disorders characterized by persistent feelings of worry, sadness, and a lack of interest in life activities.

Insomnia

A sleep disorder characterized by difficulty falling asleep, staying asleep, or getting restorative sleep.