The multiplier effect occurs because
A) when national income rises,the MPC increases,prompting further increases in income.
B) the new income generated by an increase in aggregate demand will be spent,each time becoming new income again.
C) the level of national income must be multiplied by the average propensity to consume to find total consumption spending.
D) what business firms view as spending is viewed by households as income,so that new investment automatically becomes new income.
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