Economics · Macroeconomic Multiplier
The multiplier effect in macroeconomics is used to explain how an initial increase in spending can lead to:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1a larger total increase in income and output than the initial injection✓
- 2fall in savings to zero
- 3elimination of inflation automatically
- 4a repeated contraction in output only
Correct answer
a larger total increase in income and output than the initial injection
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