The Expenditure Multiplier Occurs Because

Multiple Choice

The expenditure multiplier occurs because

A) a change in autonomous expenditure causes real GDP to change in the opposite direction.
B) government expenditure on goods and services change by a proportional amount to government taxes.
C) a change in autonomous expenditures changes households' incomes.
D) any change in real GDP must also change the price level.
E) a change in households' incomes changes autonomous expenditure.