Changes in government spending and changes in net exports have _____ multiplier effects compared to changes in investment spending.
A) smaller
B) larger
C) the same
D) at first, smaller, but later, larger

Question

Quizplus · Accepted Answer

Changes in government spending, changes in net exports, and changes in investment spending all have the same multiplier effects in the context of their impact on the overall economy. This is because the multiplier effect refers to the proportionate change in income or GDP that results from a change in spending, regardless of the source of that spending.

Changes in Government Spending and Changes in Net Exports Have