The Multiplier Effect Means That

question 160

Multiple Choice

The multiplier effect means that

• A) consumption is typically several times as large as saving.
• B) a change in consumption can cause a larger increase in investment.
• C) an increase in investment can cause GDP to change by a larger amount.
• D) a decline in the MPC can cause GDP to rise by several times that amount.

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Definitions:

Conductor

A material or object that allows the flow of electrical current in one or more directions.

Magnetic Flux Density

Magnetic flux density is a measure of the strength and direction of a magnetic field at a particular point, expressed in teslas (T), indicating how dense the field lines are in that area.

Induced Voltage

A voltage generated in a conductor due to its motion in a magnetic field or due to a changing magnetic field around it.

Ampere-turns

A unit of magnetomotive force represented by the product of current (in amperes) and the number of turns in a coil, influencing the strength of the magnetic field generated.