Solve the question of and select the option from the choices A through D/E. Check your Answer and view the explanation.
Question: 2
Multiplier process in economic theory is conventionally taken to mean:
- the manner in which prices increase
- the manner in which banks create credit
- income of an economy grows on account of an initial investment
- the manner in which government expenditure increases
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Correct Answer: C
None
Sol. In economics, a multiplier is a factor of proportionality that measures how much an endogenous variable change in response to a change in some exogenous variable.