The expenditure multiplier acts on changes in investment spending,government purchases,net exports,and autonomous consumption.

Question

Quizplus · Accepted Answer

The expenditure multiplier is a measure of how much total spending in the economy will change in response to a change in one of these autonomous expenditures, such as investment, government purchases, net exports, or autonomous consumption. Therefore, the statement is true.

The Expenditure Multiplier Acts on Changes in Investment Spending,government Purchases,net