All of the Following Are True Statements About the Multiplier

question 157

Multiple Choice

All of the following are true statements about the multiplier except

• A)the multiplier rises as the MPC rises.
• B)the smaller the MPS,the larger the multiplier.
• C)the multiplier is a value between zero and one.
• D)the multiplier effect occurs when autonomous expenditure changes.

---

Definitions:

Production Process

The method or sequence of operations involved in the conversion of raw materials into finished goods or services.

Added Profit

The additional income earned from an investment, project, or business activity after accounting for all costs and expenses.

Optimal R&D

The most efficient allocation of resources towards research and development activities to maximize innovation and return on investment.

Expenditures

The act of spending money or utilizing resources for various purposes, including paying for goods, services, or obligations.