In Order to Simplify the Equation for the Multiplier to Its

question 51

Multiple Choice

In order to simplify the equation for the multiplier to its familiar,relatively simple form,we make use of the

• A)assumption that increases in government purchases have no effect on consumer spending.
• B)assumption that the feedback effects associated with changes in government purchases become negligible after two or three rounds of spending have occurred.
• C)empirical evidence that points to a value of about 3/4 for the MPC.
• D)fact that the multiplier effect is represented by an infinite geometric series.

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Definitions:

Gatekeeper

A gatekeeper is an individual or entity responsible for controlling access to information, resources, or markets, often acting as a filtering or deciding factor.

Two-Step Flow Theory

Explains that media can also influence early adopters of new ideas (called “opinion leaders”) who filter the content through their own interpretations and then pass it on to influence certain groups of publics.

Early Adopters

describes individuals or businesses who use or adopt new products, services, or technologies before the majority of the population, often influencing trends and market acceptance.

Content Analysis

A research method used to identify the presence of certain words, themes, or concepts within qualitative data sets, such as texts, images, or media.