Which of the Following Is a True Statement About the 'Multiplier

question 28

Multiple Choice

Which of the following is a true statement about the 'multiplier'?

• A)The multiplier solely depends on the MPC.
• B)The smaller the MPC, the smaller the multiplier.
• C)The multiplier is a value between zero and one.
• D)The multiplier effect does not occur when autonomous expenditures decrease.

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Definitions:

Repetitive Focus Facilities

Production facilities designed for the efficient manufacture of a high volume of similar products.

Continuous Model

An analytical or simulation model that operates over a continuum of time or space, without discrete breaks or steps.

Mass Customization

A production approach where goods and services are customized to meet individual customer's needs with near mass production efficiency.

iTunes

A media player, media library, and mobile device management application developed by Apple Inc., used for purchasing, organizing, and playing digital music and videos.