a. a rise in the money supplyb. a rise in taxesc. a boost in federal government spendingd. All of the over are correct.D


You are watching: The logic of the multiplier effect applies

a. only to alters in government spending.b. to any kind of change in spending on any kind of component of GDP.c. only to changes in the money supply.d. just when the crowding-out result is sufficiently solid.B
The multiplier result says that there are added shifts in aggregate demand from fiscal plan bereason it
a. reduces investment and thereby boosts customer spfinishing.b. boosts the money supply and also thereby reduces interemainder prices.c. increases income and also thereby rises consumer spending.d. decreases revenue and also thereby rises consumer spending.C
Which of the following tends to make aggregate demand change even more to the best than the amount through which federal government expenditures increase?
a. the crowding-out effectb. the multiplier effectc. the exchange-price effectd. the interest-price effectB
The federal government buys brand-new tools systems. The manufacturers of weapons pay their employees. The employees spend this money on goods and also services. The firms from which the employees buy the products and also solutions pay their employees. This sequence of events illustrates
a. positive feedago from aggregate demand to investment.b. negative feedback from accumulation demand also to investment.c. positive feedago from accumulation supply to investment.d. negative feedago from accumulation supply to investment.A
a. An rise in government expenditures decreases the interest price and also so boosts investment spfinishing.b. An increase in government expenditures increases the interest rate and also so reduces investment spfinishing.c. A decrease in federal government expenditures increases the interest price and also so increases investment spfinishing.d. A decrease in government expenditures decreases the interest price and so reduces investment spending.B
a. the reduction in aggregate supply that results as soon as a financial development causes the interemainder rate to decrease.b. the reduction in aggregate demand that results as soon as a financial growth causes the interest price to decrease.c. the reduction in aggregate demand also that results when a fiscal growth causes the interest price to increase.d. the reduction in accumulation demand that outcomes when a decrease in federal government spending or a rise in taxes causes the interest rate to boost.C
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