All of the following are true statements about the multiplier, except
A)the multiplier rises as the MPC rises.
B)the smaller the MPS, the larger the multiplier.
C)the multiplier is a value between zero and one.
D)the multiplier effect occurs when autonomous expenditure changes.
E)the multiplier effect is caused by induced consumption.

Question

Quizplus · Accepted Answer

The multiplier is not a value between zero and one but a numerical value greater than one. It represents the total impact on economic activity resulting from a change in autonomous expenditure.

All of the Following Are True Statements About the Multiplier