Solved

The Income-Expenditure Multiplier Leads to Greater Than One-For-One Changes in Output

Question 144

Multiple Choice

The income-expenditure multiplier leads to greater than one-for-one changes in output when spending changes because:


A) the direct changes in spending change the income of producers which leads to additional changes in spending.
B) multiple deposits are generated when new reserves are produced through fractional reserve banking.
C) real output continues to adjust until it equals nominal output.
D) change the income of producers leads to additional tax revenue for the government, which will changes their level of spending.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents