Which best describes why the multiplier exist

What is meant by multiplier?Why shoul the value of multiplier rise when people spend more on consumption?

What is the multiplier effect in economics? A. The tendency of consumers to save rather than spend B. The tendency of firms to reduce production during a recession C. The amplification of changes in spending through the economy D. The reduction of government spending to control inflation

In an economy the change in income is $2300 and change in investment is $700   What will be the multiplier

There might be many factors (economic and non-economic) that affect the size of the multiplier. What are some that you think could influence its size? Which ones do you think would make it larger, and which are more likely to make it smaller?

Which best describes why the multiplier exists? When people spend money, that money ends up in the pockets or bank accounts of other people or organizations, who then use that money in some way. The multiplier exists because money spent today is always more valuable than money spent in the future, due to inflation and interest rates. When people see other people spending money, they know that the economy is about to improve, leading them to spend more money. When people see the government spending more money, they realize that the government thinks that prices are low; thus, they believe it is a good time to buy things.

Which of the following statements best describes the multiplier effect in economics? A. The process of reducing government spending to stimulate economic growth. B. An increase in consumer saving when government expenditure decreases. c. A phenomenon where an initial increase in spending leads to a more significant overall increase in economic output. D. The concept of a fixed relationship between inflation and unemployment rates.

How does an increase in tax influence the size of the multiplier

How do you calculate marginal propensity to consume and how does it effects the multiplier?

Use the diagram to answer the question which one of the following will increase the size of the multiplier? A. an increase in the level of net exports B. An increase in the marginal propensity to consume C. an increase in the marginal propensity to save D. a reduction in the level of government spending