The Government-Purchases Multiplier Indicates How Much ______ Change(s) in Response

question 82

Multiple Choice

The government-purchases multiplier indicates how much ______ change(s) in response to a $1 change in government purchases.

• A) the budget deficit
• B) consumption
• C) income
• D) real balances

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Definitions:

Glucose

A basic form of sugar that serves as a crucial source of energy in living beings and constitutes a part of numerous carbohydrates.

Gustatory Cortex

A region of the brain responsible for the perception of taste.

Genetic Predisposition

An inherited tendency to develop certain traits, conditions, or diseases.

Self-Perception Theory

A psychological theory suggesting people deduce their attitudes and feelings from observing their own behavior and the situations in which this behavior occurs.