The multiplier effect applies a. Only to changes in government spending b. To a change in...
The multiplier effect applies
a. Only to changes in government spending
b. To a change in spending of any component of GDP
c. Only to change in the money supply
d. Only when the crowding-out effect is sufficiently strong
Homework Answers
Answer
Option b
b. To a change in spending of any component of GDP
Multiplier effect applies to all the elements in the GDP
As the change in one element changes income by the multiplier times.
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The multiplier effect applies
a. Only to changes in government spending
b. To a change in...
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The government expenditure multiplier is the effect of a change in government expenditure on goods and...
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