The expenditure multiplier is used to calculate the change in
A)spending caused by a change in income.
B)equilibrium income resulting from a change in interest rates.
C)equilibrium income resulting from an independent change in spending.
D)investment caused by a change in consumption.

Question

Quizplus · Accepted Answer

The expenditure multiplier measures the change in equilibrium income resulting from an independent change in spending, such as government spending or investment.

The Expenditure Multiplier Is Used to Calculate the Change in