An Increase in the MPC

question 73

Multiple Choice

An increase in the MPC

• A)increases the multiplier,so that changes in government expenditures have a larger effect on aggregate demand.
• B)increases the multiplier,so that changes in government expenditures have a smaller effect on aggregate demand.
• C)decreases the multiplier,so that changes in government expenditures have a larger effect on aggregate demand.
• D)decreases the multiplier,so that changes in government expenditures have a smaller effect on aggregate demand.

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Definitions:

Commons

Describes resources that are accessible to all members of a society, including natural resources like air and water, and cultural goods such as public land and knowledge.

Nineteenth Amendment

An amendment to the United States Constitution granted women the right to vote, ratified in 1920.

Nazism

The ideologies and practices associated with the National Socialist German Workers' Party, led by Adolf Hitler; characterized by fascist policies, racial purity rhetoric, and totalitarian governance.

Protestantism

A branch of Christianity that originated with the Reformation, a movement against what its followers perceived as errors in the Roman Catholic Church.