The multiplier effect of government spending can be stated as a __________ multiplier or a __________ multiplier.
A) fiscal; money
B) spending; job
C) federal; local
D) government; private sector

Question

Quizplus · Accepted Answer

The multiplier can be stated as a job multiplier, which gives the total number of jobs created by one additional government funded job. The multiplier can also be stated ass a spending multiplier, which gives the increase in GDP created by one additional dollar of government expenditures.

The Multiplier Effect of Government Spending Can Be Stated as a __________