What is the multiplier?
A)It is the effect on income of a change in autonomous spending.
B)It is the effect on autonomous spending of a change in income.
C)It is the effect on the level of investment of a change in income.
D)It is the effect on aggregate demand of a change in income.

Question

Quizplus · Accepted Answer

The multiplier refers to the effect on income (or output) of a change in autonomous spending, such as government spending or investment. It measures the overall impact of this change on the economy, as the initial change in spending sets off a chain reaction of further spending and production.

What Is the Multiplier