The multiplier applies to:
A)investment but not to net exports or government spending.
B)investment, net exports, and government spending.
C)increases in spending but not to decreases in spending.
D)spending by the private sector but not by the public sector.
Answer:B
The multiplier applies to:
A)investment but not to net exports or government spending. B)investment, net exports, and government spending. C)increases in spending but not to decreases in spending. D)spending by the private sector but not by the public sector.