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the multiplier effect means that: group of answer choices an increase in investment can cause gdp to change by a larger amount. a decline in the mpc can cause gdp to rise by several times that amount. a change in consumption can cause a larger increase in investment. consumption is typically several times as large as saving.

Respuesta :

Due to the multiplier effect, an increase in investment may result in a bigger change in GDP.

The multiplier effect: What does it mean?

The proportional increase or decrease in final revenue that results from a capital infusion or withdrawal is referred to as the multiplier effect in economics.

The multiplier effect, does it boost GDP?

According to the multiplier effect, an increase in new spending (such as exports, government spending, or investment) can result in a greater rise in total national revenue (GDP).  This is due to the fact that a percentage of the increased spending will be spent by other businesses and people, generating money.

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