The Idea of the Spending Multiplier Is That

question 267

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 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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