Multiple Choice
The government builds a new water-treatment plant. The owner of the company that builds the plant pays her workers. The workers increase their spending. Firms from which the workers buy goods increase their output. This type of effect on spending illustrates
A) the multiplier effect.
B) the crowding-out effect.
C) the Fisher effect.
D) the wealth effect.
Correct Answer:
Verified
Correct Answer:
Verified
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