Which of the following would be a "multiplier effect" resulting from the decrease in home construction in the late 2000s?
A) A decrease in employment in the home construction industry
B) A decrease in the demand for home mortgages
C) A decrease in the demand for home appliances
D) A decrease in real interest rates

Question

Quizplus · Accepted Answer

The "multiplier effect" refers to the broader economic impact that a change in one sector can have on other sectors. A decrease in home construction would lead to a decrease in demand for home appliances, as fewer homes being built means fewer appliances needed, illustrating the ripple effect across related industries.

Which of the Following Would Be a "Multiplier Effect" Resulting