The Multiplier Effect Is The

question 175

Multiple Choice

The multiplier effect is the:

• A) subsequent consumer spending that increases AD from expansionary fiscal policy.
• B) subsequent consumer spending that increases AD from contractionary fiscal policy.
• C) increase in GDP from an increase in the money supply and decrease in taxes.
• D) increase in GDP from increased consumer savings and private investment.

---

Definitions:

Canadian Treasury Bills

Short-term government securities issued by the Canadian government, featuring a maturity of less than one year and sold at a discount.

Volatility

A statistical measure of the dispersion of returns for a given security or market index, often associated with the level of risk involved.