The Multiplier Effect Means That

question 160

Multiple Choice

The multiplier effect means that

• A) consumption is typically several times as large as saving.
• B) a change in consumption can cause a larger increase in investment.
• C) an increase in investment can cause GDP to change by a larger amount.
• D) a decline in the MPC can cause GDP to rise by several times that amount.

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Definitions:

MEO

Medium Earth Orbit, a region of space around Earth with altitudes between 2,000 and 35,786 kilometers, used for satellite communication and navigation systems.

Satellite Telephone Services

Communication services that use satellites to provide telephone connectivity to users in remote or underserved areas.

GEO

Commonly used as an abbreviation for geographical, related to the physical characteristics of the earth or the distribution of objects, people, or phenomena on Earth.

LEO

Low Earth Orbit, the region of space around the Earth at altitudes between approximately 160 to 2,000 kilometers.