The size of the multiplier depends on the
A) interest rates charged on consumer credit and household mortgages
B) amount of money that is printed by the Federal Reserve System
C) spending and saving patterns of businesses and individuals
D) extent to which households expect future changes in personal taxes

Question

Quizplus · Accepted Answer

The size of the multiplier in economics primarily depends on the spending and saving patterns of businesses and individuals, as these patterns determine how much of an initial injection of spending will be further spent or saved, influencing the overall impact on the economy.

The Size of the Multiplier Depends on the