Multiple Choice
Which of the following is a true statement about the multiplier?
A) The multiplier rises as the MPC rises.
B) The smaller the MPC, the larger the multiplier.
C) The multiplier is a value between zero and one.
D) The multiplier effect does not occur when autonomous expenditure decreases.
E) The multiplier only applies to government spending.
Correct Answer:
Verified
Correct Answer:
Verified
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