The Positive Feedback from Aggregate Demand to Investment Is Called

question 5

Multiple Choice

The positive feedback from aggregate demand to investment is called

• A)the investment multiplier.
• B)the crowding-out effect.
• C)the investment accelerator.
• D)the crowding-in multiplier.

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Definitions:

Probability

Probability is the measure of the likelihood that an event will occur, quantified as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Diversified Portfolios

Investment strategies involving a mix of assets (stocks, bonds, real estate, etc.) to reduce risk through diversification.

Positive Correlation

A relationship between two variables where they move in the same direction; as one increases, the other also increases.

Recession Risk

The likelihood of an economic downturn, characterized by a significant decline in economic activity across the economy lasting more than a few months.