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:

Bird-like Hip

A type of pelvis structure found in some dinosaurs characterized by a forward-tilting pubis, similar to that of birds.

Mesozoic Era

A geological era that occurred between 252 and 66 million years ago, characterized by the dominance of dinosaurs.

Paleozoic

An era in the geologic time scale, occurring from about 541 million to 252 million years ago, noted for the early development of life on Earth.

Crinoids

Marine animals belonging to the class Crinoidea, characterized by a mouth on the top surface surrounded by feeding arms, part of the echinoderm phylum.