Because of the multiplier, a one-time change in expenditure will
A. have little secondary effect on real GDP.
B. expand real GDP by an infinite amount.
C. generate more additional real GDP than the initial change in expenditure.
D. decrease saving and investment activity and thereby decrease future real GDP.
Answer:C
Because of the multiplier, a one-time change in expenditure will
A. have little secondary effect on real GDP. B. expand real GDP by an infinite amount. C. generate more additional real GDP than the initial change in expenditure. D. decrease saving and investment activity and thereby decrease future real GDP.