The Multiplier Principle Explains How

question 18

Multiple Choice

The multiplier principle explains how

• A)any change in the economy will be magnified.
• B)$1 invested will increase GDP by more than $1.
• C)expenditures and incomes increase as investment increases.
• D)All of the above are correct.

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Definitions:

Revolving Debt

A form of credit that allows the borrower to draw down, repay, and redraw loans repeatedly up to a certain credit limit.

Seed-stage Financing

Early financial investment aimed at supporting the launch and early growth of a startup, often in exchange for equity.

Concept

A general idea or understanding that represents something abstract or complex.

Capital

Financial assets or resources that individuals or businesses use to fund their operations and invest in growth opportunities.