The Multiplier Process

question 89

Multiple Choice

The multiplier process:

• A) explains how spending continues indefinitely with continuous rounds of spending.
• B) ends after one round of spending and with total spending limited to the initial change in spending.
• C) occurs only when economies are in an expansion phase.
• D) is limited,with the total change in real GDP dependent upon the size of the marginal propensity to consume.

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Definitions:

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