Which of the Following Is a True Statement About the Multiplier

question 9

Multiple Choice

Which of the following is a true statement about the multiplier?

• A)The multiplier rises as the MPC rises.
• B)The smaller the MPC,the larger the multiplier.
• C)The multiplier is a value between zero and one.
• D)The multiplier effect does not occur when autonomous expenditure decreases.

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Definitions:

Converging

The process of coming together or the meeting of different ideas or elements to form a new whole.

Credibility

The quality of being trusted and believed in, often evaluated in the context of individuals, organizations, or information.

Personal Interaction

Direct communication or exchange between individuals, allowing for immediate feedback and personal connection.

Trustworthiness

The quality of being reliable, truthful, and credible in personal or professional contexts.