The multiplier effect refers to the series of
A) induced increases in consumption spending that result from an initial increase in autonomous expenditures.
B) autonomous increases in consumption spending that result from an initial increase in induced expenditures.
C) induced increases in investment spending that result from an initial increase in autonomous expenditures.
D) autonomous increases in investment spending that result from an initial increase in induced expenditures.
A
You might also like to view...
In economics, scarcity means that
A. Society's desires exceed resources available. B. The market mechanism has failed. C. A production possibilities curve cannot accurately represent the trade-off between two goods. D. A shortage of a particular good will cause the price to fall.
Why do many firms base incentive pay on group performance?
What will be an ideal response?