Question

When demand falls for durable goods such as houses, furniture, appliances and cars, workers who produce those goods tend to lose jobs and income, and a multiplier effect occurs. The meaning of the term multiplier effect is that
Group of answer choices

A) demand for nondurable goods increases and more workers are hired in these industries.

B) laid-off workers spend less, which reduces demand and therefore jobs in other industries.

C) the government multiplies its spending to compensate for the fall in demand in durable-goods industries.

D) the Federal Reserve System increases the money in circulation in order to increase demand.

Answer 1

The answer is B your welcome