The Principle of the Multiplier States That

Multiple Choice

The principle of the multiplier states that:

A) any autonomous increase in spending that causes the aggregate expenditure line to shift up will result in a larger increase in national income.
B) any autonomous increase in spending that causes the aggregate expenditure line to shift up several times will result in a larger increase in national income.
C) any equilibrium increase in national income will result in a larger increase in autonomous spending.
D) for any given increase in equilibrium income, there will be a less than proportional increase in consumer spending.