The Income-Expenditure Multiplier Leads to Greater Than One-For-One Changes in Output

question 130

Multiple Choice

The income-expenditure multiplier leads to greater than one-for-one changes in output when autonomous spending changes because:

• A)the direct changes in spending change the income of producers which leads to additional changes in spending.
• B)multiple deposits are generated when new reserves are produced through fractional reserve banking.
• C)autonomous spending supports more output than induced spending.
• D)planned changes in inventories signal producers to adjust the level of output.

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Definitions:

Right Side

Pertaining to the portion of the body or a spatial direction to the observer's right, often in relation to the left side for comparison or direction.

Upper Body

Refers to the part of the human body that includes the chest, back, shoulders, arms, and neck.

Lower Body

The part of the human body that includes the hips, thighs, legs, and feet.

Left Side

Refers to the side of something or someone that is to the west when facing north.