The Multiplier Effect on Total Output in the Economy Occurs

Multiple Choice

The multiplier effect on total output in the economy occurs because an initial change in:

A) income-determined spending leads to further changes in income-determined spending.
B) nonincome-determined spending leads to further changes in income-determined spending.
C) income-determined spending leads to further changes in nonincome-determined spending.
D) nonincome-determined spending leads to further changes in nonincome-determined spending.