An Example of the Multiplier Effect Is When

Multiple Choice

An example of the multiplier effect is when

A) the government increases government spending initially by $100 billion,and total income in the economy increases by less than $100 billion.
B) an increase in the price level leads to a shift in the aggregate demand curve.
C) the government increases government spending initially by $100 billion,and total income in the economy increases by more than $100 billion.
D) an increase in government spending leads to a decrease in private investment.
E) short-run aggregate supply shifts in a response to fiscal policy.