The Main Components of the Multiplier Effect Are Induced and Indirect

question 7

Multiple Choice

The main components of the multiplier effect are induced and indirect income.Induced income refers to

• A)Income produced by spending on local materials, energy, etc.as part of operating expenses
• B)Income produced by spending at local restaurants or stores as part of attending the institution or event
• C)Income produced by spending by the institution's employees
• D)Income produced by local businesses

---

Definitions:

Consumed

The act of using up a resource or goods, rendering them unable to be used again or necessitating their replacement.

International Trade

The exchange of goods and services between countries.

Equilibrium Price

The market price at which the supply of an item equals the quantity demanded, leading to a stable market condition without surplus or shortage.

China

A populous country in East Asia, known for its ancient civilization and as a major economic and political power in the modern world.