Multiple Choice
A city decides to build a new hockey arena. The owner of the construction company that builds the new arena pays their workers. The workers increase their spending. Firms that the workers buy goods from increase their output. What does this type of effect on spending illustrate?
A) the multiplier effect
B) the crowding-out effect
C) the Fisher effect
D) the liquidity preference effect
Correct Answer:
Verified
Correct Answer:
Verified
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