1. Define the multiplier effect (not the multiplier). Hint: the surprising result

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2. The most significant determinant of the level of consumer spending is disposable income.

T/F

3. The four most important non-income determinants of consumption spending are

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4. Match the multiplier with the MPC.

_ 0.75 1. 10

_ 0.90 2. 8

_ 0.80 3. 5

_ 0.875 4. 4

5. List four of the six non-interest determinants that shift the investment demand curve.

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