The multiplier effect refers to the fact that a change in spending (aggregate demand) will
a. increase the money supply.
b. cause prices to rise by some multiple of the initial increase in spending.
c. cause nominal output to rise by some multiple of the initial increase in spending.
d. reduce prices by some multiple of the increase in spending.
C
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The HeckscherOhlin model assumes that factors of production can move freely _______, but cannot move _______.
a. domestically; internationally b. after they are fully trained; before the training period is over c. internationally; domestically d. within unskilled occupations; into highskill jobs
Dee's TV Repair is the only TV repair shop in a small town. Dee is a single-price monopolist. Based on the demand and cost information in the table above, what quantity of TV repairs should Dee undertake?
A) 0 per week B) 10 per week C) 20 per week D) 30 per week