The multiplier effect is the series of ________ increases in ________ expenditures that result from an initial increase in ________ expenditures.
A)induced; investment; autonomous
B)induced; consumption; autonomous
C)autonomous; consumption; induced
D)autonomous; investment; induced

Question

Quizplus · Accepted Answer

The multiplier effect is a result of induced increases in consumption expenditures that arise from an initial increase in autonomous expenditures (such as government spending or investment). Therefore, the correct choice is (B) induced; consumption; autonomous.

The Multiplier Effect Is the Series of ________ Increases in ________

The Multiplier Effect Is the Series of Increases in