Question

Due to the ________, a change in investment or business spending has a magnified effect on total spending.

Answer 1

multiplier

Step-by-step explanation:

Multiplier is the quantity that income exceeds the injections of demand, for example:

We could consider 100 million in the investment, creating a new production plan, in this case, there will be a reaction in two ways, the cost increase and the contracts for new companies too.

If the companies and employees using 3/5 of these profits there will be other goods and services working in that way, this cycle is repeated in a circular flow.