The multiplier effect exists because a change in autonomous expenditure
A. leaves the economy in the form of imports.
B. leads to changes in income, which generate further spending.
C. prompts further exports.
D. will undergo its complete effect in one round.
Answer:B
The multiplier effect exists because a change in autonomous expenditure
A. leaves the economy in the form of imports. B. leads to changes in income, which generate further spending. C. prompts further exports. D. will undergo its complete effect in one round.