The Notion That When the Government Increases Its Purchases of Aeroplanes

Multiple Choice

The notion that when the government increases its purchases of aeroplanes, the owners and employees of the aeroplane manufacturing companies will also purchase more as their incomes rise, and hence total purchases will increase by more than the initial change in government purchases, is known as the:

A) crowding-out effect
B) Keynesian effect
C) multiplier effect
D) acceleration effect