Which of the following statement is false?
A. In dynamic multiplier, there is lagged relationship between consumption and disposable income.
B. The dynamic multiplier process can be presented as a decreasing geometric series of change in income in the following period.
C. A major portion of the multiplier effect is realized in fewer periods when the marginal propensity to consume is smaller.
D. A major portion of the multiplier effect is realized in fewer periods when the marginal propensity to consume is larger.
Answer:C
Which of the following statement is false?
A. In dynamic multiplier, there is lagged relationship between consumption and disposable income. B. The dynamic multiplier process can be presented as a decreasing geometric series of change in income in the following period. C. A major portion of the multiplier effect is realized in fewer periods when the marginal propensity to consume is smaller. D. A major portion of the multiplier effect is realized in fewer periods when the marginal propensity to consume is larger.