The Idea of the Spending Multiplier Is That

question 79

Multiple Choice

The idea of the spending multiplier is that:

• A) one person's spending becomes another person's income, which stimulates more spending.
• B) people spend money on some items, such as food and toiletries, multiple times.
• C) people tend to spend a greater amount in stores than they originally intended.
• D) when a person saves money in a bank, the bank lends it out to another person to be spent.

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Definitions:

Subordinates

Employees who are lower in rank or position and report to a supervisor or manager.

Referent Power

The degree to which a leader can influence others through their desire to identify and be associated with them.

Reward Power

The influence a person has over others based on the ability to grant rewards.

Favoritism

The practice of giving unfair preferential treatment to one person or group at the expense of others.