The Multiplier Effect Exists Because a Change in Autonomous Expenditure

question 347

Multiple Choice

The multiplier effect exists because a change in autonomous expenditure

• A) leaves the economy in the form of imports.
• B) leads to changes in income, which generate further spending.
• C) prompts further exports.
• D) will undergo its complete effect in one round.

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Definitions:

Up-Market Betas

Measures of an asset's sensitivity to market movements, particularly during periods of rising market prices.

Geometric Average Return

The average rate of return on an investment per year, compounded annually, over a specified time period.

Arithmetic Return

The simple average of a series of returns generated over a period of time.

Sharpe Measure

A metric used to evaluate the risk-adjusted return of an investment portfolio.