The Multiplier Effect Refers to the Series of

question 250

Multiple Choice

The multiplier effect refers to the series of

• A)autonomous increases in consumption spending that result from an initial increase in induced expenditures.
• B)induced increases in consumption spending that result from an initial increase in autonomous expenditures.
• C)autonomous increases in investment spending that result from an initial increase in induced expenditures.
• D)induced increases in investment spending that result from an initial increase in autonomous expenditures.
• E)induced increases in net exports that result from an initial increase in autonomous expenditures.

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Definitions:

Division of Labour

The assignment of different parts of a manufacturing process or task to different individuals in order to improve efficiency and productivity.

Vertical Dimension

Pertains to the hierarchical structure within organizations or systems, indicating levels of authority or rank from lower to higher.

Horizontal Dimension

In organizational contexts, it refers to the extent of collaboration and integration across different departments or functions within the company.

Environmental Constraints

Limitations or restrictions on actions or operations imposed by the external environment, including legal, economic, technological, and social factors.