The Expenditure Multiplier Indicates That

question 33

Multiple Choice

The expenditure multiplier indicates that

• A) changes in investment, government, or consumption spending can trigger much larger changes in output.
• B) an increase in saving will cause output to rise by a multiple of the additional saving.
• C) a market economy will be more stable than classical economists thought.
• D) the marginal propensity to consume is greater than one.

---

Definitions:

Bilingual

Bilingual describes a person who can speak two languages fluently.

Monolingual

A person who speaks only one language.

Montreal

Montreal is a major city in Quebec, Canada, known for its vibrant culture, historic architecture, and being a significant hub for commerce, aerospace, technology, and the arts.

Intellectual Tests

Assessments designed to evaluate an individual's cognitive abilities, such as reasoning, problem-solving, and memory.