Question

The multiplier applies to Group of answer choices investment, net exports, and government spending. increases in spending but not to decreases in spending. spending by the private sector but not by the public sector. investment but not to net exports or government spending.

Answer 1

The multiplier applies to the investment, net exports and government spending.

What is a multiplier?

This refers to an economic factor that of increased, it can causes an increases in many other related economic variables.

Hence, in economics, its applies to the investment, net exports and government spending.

Therefore, the Option A is correct.

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