Which of the Following Correctly Describes the Multiplier in an Economy

question 72

Multiple Choice

Which of the following correctly describes the multiplier in an economy?

• A) It is a measure of how much consumption increases as consumers' income grows.
• B) It is a measure of how much output grows following an increase in autonomous
• C) It is a measure of how much consumption falls as savings increases.
• D) It is a measure of how much investment increases as the interest rate falls.

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Definitions:

Chromosomes

Thread-like structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of deoxyribonucleic acid (DNA), carrying genetic information.

Fertilisation

The fusion of gametes (egg and sperm) to initiate the development of a new individual organism.

Zygote

The initial cell formed when a sperm cell fertilizes an egg cell, representing the earliest stage of embryonic development.

Egg

A reproductive cell produced by female organisms, capable of developing into a new individual upon fertilization.