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 than they originally intended.
D) when a person saves money in a bank, the bank lends it out to another person to be spent.