If the Investment Accelerator from an Increase in Government Purchases

question 12

Multiple Choice

If the investment accelerator from an increase in government purchases is larger than the crowding-out effect,then

• A)the multiplier is probably zero.
• B)the multiplier is probably equal to one.
• C)the multiplier is probably greater than one.
• D)the multiplier is probably less than one.

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Definitions:

Principle of Opposites

The concept that states opposing forces or tendencies are inherent in the human psyche and are necessary for balance and psychological development.

Conflicts

Internal or external struggles resulting from opposing needs, desires, or demands.

Polarities

Dualities or opposing forces that create tension and dynamics within various contexts, such as personality, politics, or physics.

Perceiving

The process of becoming aware of or understanding sensations and information through the senses.