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.
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