The Impact Effect Is the

question 8

Multiple Choice

The impact effect is the

• A)zero period dynamic multiplier.
• B)h period dynamic multiplier, h>0.
• C)cumulative dynamic multiplier.
• D)long-run cumulative dynamic multiplier.

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Definitions:

Spending Limit

The maximum amount of money a person or organization is willing to spend on a particular item, project, or overall budget.

Budget Line

A visual depiction of every combination of two items that a person can purchase, based on their earnings and the costs of these products.

Good X

A placeholder term often used in economics to denote a specific, but unspecified, commodity or product in theoretical discussions.

Good Y

A placeholder term often used in economics to denote a specific good or product under consideration in a model or theory.