The Multiplier Effect Exists Because a Change in Autonomous Expenditure

question 208

Multiple Choice

The multiplier effect exists because a change in autonomous expenditure

• A) prompts further exports.
• B) leads to changes in income, which generate further spending.
• C) will undergo its complete effect in one round.
• D) leaves the economy in the form of imports.

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Definitions:

Time Flexibility

The ability to adjust schedules, deadlines, or timelines to accommodate changes in demand, supply, or operational requirements, enhancing responsiveness and efficiency.

Manufacturing Capacity

The maximum output or production ability of a manufacturing facility, considering constraints like physical space, machinery, and labor hours available.

Inventory Costs

Expenses associated with holding or managing goods in stock, including storage, handling, and depreciation.

Temporary Workforce

Employees hired on a non-permanent basis to address short-term workload increases, covering for absent employees, or to provide specialized skills.