The multiplier effect a. intensifies the effect of an increase in spending but not a decrease....
The multiplier effect
a. intensifies the effect of an increase in spending but not a decrease.
b. intensifies the effect of a decrease in spending but not an increase.
c. diminishes the effect of a spending change, whether it is an increase or decrease.
d. intensifies the effect of a spending change, whether it is an increase or decrease.
Homework Answers
Multiplier effect implies that amplification of initial change.
In other words, if initial change leads to greater final change then this process is termed as multiplier process as initial change has multiplied to create a much greater final change.
So,
The multiplier effect intensifies the effect of a spending change, whether it is an increase or decrease.
Hence, the correct answer is the option (d).
Add Answer to:
The multiplier effect
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