The Multiplier Effect Occurs When

question 21

Multiple Choice

The multiplier effect occurs when:

• A)spending by one person causes others to spend more too,increasing the impact of the initial spending on the economy.
• B)the level of consumer confidence increases more than predicted given a tax cut.
• C)increased spending by one or more individuals causes others to react and increase their savings.
• D)None of these is true.

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Definitions:

Poor Children

Refers to children living below the poverty line, lacking access to essential resources such as food, shelter, and education.

Single Mother

A woman raising her child or children without the support of a partner within the household.

Family

A social unit consisting of individuals related by blood, marriage, or other forms of partnership, often forming a household.

Darity-Myers Thesis

A hypothesis or perspective in economics, but without more context, the specific content or assertion of this thesis is uncertain. Likely not a widely recognized economic term without additional specification.