The Spending Multiplier Is

question 20

Multiple Choice

The spending multiplier is

• A) a formula to determine the total impact on savings from an initial change of a given amount.
• B) a formula to determine the total impact on consumption from an initial change of a given amount.
• C) only used when government spending increases.
• D) a formula to determine the total impact on spending from an initial change of a given amount.
• E) only used when government spending decreases.

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