The Idea of the Spending Multiplier Is That

Multiple Choice

The idea of the spending multiplier is that:

A) one person's spending becomes another person's income, which stimulates more spending.
B) people spend money on some items, such as food and toiletries, multiple times.
C) people tend to spend a greater amount in stores than they originally intended.
D) when a person saves money in a bank, the bank lends it out to another person to be spent.