What Is the Multiplier

question 2

Multiple Choice

What is the multiplier?

• A)It is the effect on income of a change in autonomous spending.
• B)It is the effect on autonomous spending of a change in income.
• C)It is the effect on the level of investment of a change in income.
• D)It is the effect on aggregate demand of a change in income.

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Definitions:

Strategy

A plan of action or policy designed to achieve a major or overall aim, often involving tactics and resource allocation.

Supplier Power

The influence that suppliers may have over a company, often due to the scarcity of their product or the lack of alternative suppliers.

Bearings

Machinery components used to reduce friction between moving parts and support rotational or sliding movements.

Motors

Machines that convert electrical energy into mechanical energy, typically used for powering devices, vehicles, or machinery.