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VMariaS [17]
3 years ago
15

The multiplier is greater than 1 because the change in autonomous expenditure leads to​ _______.

Business
1 answer:
tangare [24]3 years ago
3 0

Answer:

The correct answer is option B.

Explanation:

The multiplier shows the increase in total production due to change in expenditure.

The change in total expenditure is always greater than the change in expenditure.

This happens because a change in autonomous expenditure leads to grater change in the induced expenditure

Consequently, the value of multiplier is always greater than 1.

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