The Multiplier Is Greater Than 1 Because a Change in Autonomous

question 119

Multiple Choice

The multiplier is greater than 1 because a change in autonomous expenditure leads to

• A)more investment.
• B)more induced expenditure.
• C)move saving.
• D)more exports.
• E)even more autonomous expenditure.

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Definitions:

Home Mortgage

A loan given by a bank or lender to help finance the purchase of a home, secured by the property itself.

Periodic Adjustment

The regular alteration or correction of something, such as a financial rate, policy, or procedural framework, to ensure effectiveness or to respond to a changing environment.

Cost Of Living

The amount of money needed to sustain a certain level of living, including basic expenses such as housing, food, taxes, and healthcare.

Social Security

A government program that provides financial assistance to people with inadequate or no income, especially the elderly and disabled.