The Multiplier Effect Suggests That

Multiple Choice

The multiplier effect suggests that:

A) given a change in autonomous spending, equilibrium income will rise by an amount equal to the change in autonomous spending.
B) a given change in total spending will change saving by an amount equal to the MPS times the change in total spending.
C) given a change in induced spending, investment spending will change by some multiple of the change in induced spending.
D) given a change in autonomous spending, equilibrium income will change by a multiple of the initial . change in autonomous spending.