The simple spending multiplier is like
A)having a bird in the hand rather than two in the bush
B)two wrongs making a right
C)the spreading of ripples from a stone thrown in a pond
D)getting too much of a good thing
E)having too many chefs in the kitchen

Question

Quizplus · Accepted Answer

The simple spending multiplier is like the spreading of ripples from a stone thrown in a pond. Just like how throwing a stone in a pond creates ripples that spread throughout the water, an initial increase in spending can have a multiplying effect on the overall economy as the money is spent and re-spent by different individuals and businesses.

The Simple Spending Multiplier Is Like