When There Are Few Unemployed Resources, Additional Spending Will Tend

Multiple Choice

When there are few unemployed resources, additional spending will tend to

A) flow directly to the unemployed resources, so that the multiplier can be maintained at 1/1-mpc.
B) increase the marginal propensity to consume, and thereby increase the size of the multiplier.
C) increase the demand for resources and drive prices downward, increasing the size of the multiplier.
D) bid resources away from other activities and drive prices upward, reducing the size of the multiplier.