The Multiplier Effect Indicates That

question 148

Multiple Choice

The multiplier effect indicates that

• A) the aggregate demand curve is downward sloping.
• B) a change in any autonomous component of aggregate expenditure is buffered by the multiplier effect
• C) a change in income causes a magnified change in investment.
• D) a change in any autonomous component of aggregate expenditure brings about a magnified change in income.

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