-In the above figure, the multiplier is equal to
A) zero.
B) one.
C) two.
D) three.

Question

-In the above figure, the multiplier is equal to
A) zero. 
B) one. 
C) two. 
D) three.

Quizplus · Accepted Answer

The multiplier in economics refers to the factor by which a change in investment will change the total income. Without a specific figure or context provided, the most common assumption based on Keynesian economic theory is that the multiplier is greater than one, as an initial investment leads to increased spending in the economy more than the initial amount. However, without a figure or context, the closest correct answer based on standard economic theory would be that it is not zero, one, or three, leaving two as the most plausible choice given typical multiplier values in economic models.

-In the Above Figure, the Multiplier Is Equal to