The multiplier effect:
A)reduces the MPC.
B)magnifies changes in spending into larger changes in output and income.
C)promotes stability of the general price level.
D)lessens upswings and downswings in business activity.
Answer:B
The multiplier effect:
A)reduces the MPC. B)magnifies changes in spending into larger changes in output and income. C)promotes stability of the general price level. D)lessens upswings and downswings in business activity.