Multiple Choice
The multiplier effect occurs when:
A) spending by one person generates income for others and causes them to spend more too.
B) the level of consumer confidence increases more than predicted given a tax cut.
C) increased spending by one or more individuals causes others to increase their savings.
D) None of these are true.
Correct Answer:
Verified
Correct Answer:
Verified
Q124: The multiplier measures the:<br>A) effect of government
Q125: 20<sub>. </sub>Suppose that John earns a disposable
Q126: Which of the following terms is not
Q127: Suppose that John earns a disposable annual
Q128: Economist John Maynard Keynes noted that:<br>A) firms
Q129: When PAE increases, we expect that the
Q130: If the expected profitability of a business
Q131: Which of the following is not a
Q133: The figure shows planned aggregate expenditure and
Q134: If foreign income decreases, net exports will