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:

Sole Proprietorship

A business structure where a single individual both owns and runs the company, bearing unlimited personal liability for its debts.

Unlimited Liability

A business structure where the owners are personally responsible for all of the company's debts and liabilities.

Business License

A legal authorization to operate a business in a particular municipality, region, or country, often requiring renewal and compliance with specific regulations.

Primary Market Transactions

The issuance and sale of securities directly from the issuer to investors, as opposed to trading between investors in the secondary market.