At the Beginning of a Recession, the Expenditure Multiplier

question 7

Multiple Choice

At the beginning of a recession, the expenditure multiplier

• A) offsets the initial cut in autonomous expenditure and slows the recession.
• B) reinforces the initial cut in autonomous expenditure and adds force to the recession.
• C) offsets the initial cut in autonomous expenditure and reverses the recession.
• D) reinforces the initial cut in autonomous expenditure and reverses the recession.
• E) has no effect on the recession.