Multiple Choice
A multiplier effect of 3 means that:
A) nonincome-determined spending is three times as large as income-determined spending.
B) an initial change in income-determined spending causes a change in total output that is three times as large.
C) an initial change in nonincome-determined spending causes a change in total output that is three times as large.
D) an initial change in income-determined spending causes a change in nonincome-determined spending that is three times as large.
Correct Answer:
Verified
Correct Answer:
Verified
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