The Value of the Multiplier Is Likely to Fall If

question 14

Multiple Choice

The value of the multiplier is likely to fall if there is a fall in:

• A) Consumption
• B) Income
• C) Total spending
• D) The marginal propensity to consume

---

Definitions:

Capital Balances

Amounts reflected in a company's financial records that represent the owner's investment in the business.

Cash Equals

Refers to the value of assets within a company that are in liquid form and can be readily converted to cash.

Share Income

Income earned by shareholders from their investments in a company, often referred to as dividends.

Capital Balances

The amount of money that each partner in a partnership has contributed and retains in the business.