Once some economic activity is moving in the upward or downward direction,other parts of the economy tend to:
A) deviate from that momentum in order to alleviate the upward or downward pressure of the trend.
B) follow that momentum in order to gain the advantages of time bunching.
C) stay put in order to regain the next opportunities.
D) jump high and reach higher level of gains.

Question

Quizplus · Accepted Answer

Other parts of the economy tend to follow the momentum in order to gain the advantages of time bunching. This is known as the multiplier effect, where one economic activity stimulates further economic activities, leading to a chain reaction of economic growth or decline. Therefore, choice B is the best answer.

Once Some Economic Activity Is Moving in the Upward or Downward