The multiplier can take on any value
A)only greater than 1.
B)only between zero and 1.
C)only between 1 and 2.
D)greater than zero.
E)only between - 1 and 1.

Question

Quizplus · Accepted Answer

The multiplier can take on any value greater than zero. This is because the multiplier is calculated by taking the change in income and dividing it by the initial change in spending. As long as the change in income is positive, which implies an increase in spending, the multiplier can be any positive value greater than zero.

The Multiplier Can Take on Any Value