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.

---

Definitions:

RSS Feed Technology

A web feed format used to publish frequently updated information, such as blog entries, news headlines, or podcasts, allowing users to subscribe and receive updates.

Lovemarks

Brands that achieve a high level of emotional connection with consumers, transcending traditional brand loyalty through love and respect.

Brand Loyalty

The tendency of consumers to continue buying the same brand's products or services over time, reflecting a strong preference.

Psychographic

Relating to the study of personality, values, opinions, attitudes, interests, and lifestyles of an individual or group.