A Small Increase or Decrease in Consumer Demand Can Produce

question 39

Multiple Choice

A small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product.This is known as _____.​

• A)the multiplier effect
• B)​reciprocity
• C)​the conversion rate
• D)frequency

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Definitions:

Interest Rate

The proportion, in percentage, charged on the total amount borrowed or earned on the deposited amount over a specific time period.

Borrowed

Something obtained or received temporarily with the intention of returning it or its equivalent value.

Interest

The expense associated with lending money or the profit from an investment, usually shown as a percentage.

Days

A unit of time equivalent to 24 hours, generally used to measure durations and intervals.