Which of the following quotations illustrates the idea of the multiplier?
A)"The new stadium will generate $200 million in spinoff spending."
B)"Higher expected profits are leading to higher investment spending by business, and will lead to higher consumer spending."
C)"The projected cuts in government jobs will hurt the local retail industry."
D)"Taking the grain elevator out of our small town will destroy 300 jobs."
E)all of the above

Question

Quizplus · Accepted Answer

All of the choices illustrate the idea of the multiplier, which is the idea that an initial change in spending will have a larger impact on overall economic activity.

Which of the Following Quotations Illustrates the Idea of the Multiplier