The multiplier effect

A) explains what causes an expansion.
B) has no impact on equilibrium expenditure.
C) reinforces the negative effects of any reduction in spending.
D) explains what causes a recession.
E) explains how the economy recovers from a recession.

C

Economics

You might also like to view...

If a firm is earning just enough to cover all its economic profits does that mean it's not making a profit?

What will be an ideal response?

View
Economics

Explain the difference between poverty in the United States and poverty in the rest of the world.

What will be an ideal response?

View
Economics