The multiplier effect
A. generates instability in autonomous expenditure.
B. promotes stability of the general price level.
C. magnifies small changes in spending into larger changes in real GDP.
D. increases the MPC.
Answer:C
The multiplier effect
A. generates instability in autonomous expenditure. B. promotes stability of the general price level. C. magnifies small changes in spending into larger changes in real GDP. D. increases the MPC.