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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Definitions:

Product-Market Growth Analysis

A technique for identifying growth opportunities by analyzing existing and potential products and markets.

Geographic Markets

Markets that are segmented or defined by geographical boundaries, which can range from local to global.

Basic Business Strategy

A foundational approach that outlines how a business aims to achieve its goals, compete in the market, and satisfy its customers.

Customer Needs

The recognized necessities or desires that drive consumers to seek out products or services for satisfaction or solution.