The Multiplier Effect Occurs When

question 123

Multiple Choice

The multiplier effect occurs when:

• A) spending by one person generates income for others and causes others to spend more too, increasing the impact of the initial spending on the economy.
• B) the level of consumer confidence increases more than predicted given a tax cut.
• C) increased spending by one or more individuals causes others to react and increase their savings.
• D) None of these is true.

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Definitions:

Combined Results Page

A web page that aggregates and displays multiple related search results, often from different sources or databases, in one consolidated view.

Simple Random Sampling

A statistical method where each member of a population has an equal chance of being selected in the sample.

Sampling Technique

A method used to select a portion or subset from a larger group or population for the purpose of statistical analysis.

Chance

The occurrence of events in the absence of any predictable pattern or intention, often associated with randomness or luck.