Economists Refer to the Series of Induced Increases in Consumption

question 266

Multiple Choice

Economists refer to the series of induced increases in consumption spending that result from an initial increase in autonomous expenditures as the ________ effect.

• A)multiplier
• B)expenditure
• C)consumption
• D)aggregate demand

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Definitions:

Organization

Structured group of people working together to achieve common goals.

Accountants

Accountants are professionals who perform accounting functions such as audits or financial statement analysis according to prescribed methods.

Operating Activity

Activities that relate directly to the business's primary operations, such as sales, expenses, and cash flow from providing goods or services.

Public Accountant

Accountant who provides accounting services to individuals or business firms for a fee.