What decreases the size of the multiplier effect?

Name: What decreases the size of the multiplier effect?
Brand: Quizplus
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Quizplus · Accepted Answer

The multiplier effect is based on the idea that spending by one person becomes income for another person, who then spends a portion of that income, and so on. When consumers save more and spend less, this breaks the cycle of spending and reduces the potential for the multiplier effect to occur, as fewer people have income to spend in the economy.

What Decreases the Size of the Multiplier Effect