uestion 6 of 12 sapling learning Which of the following describes the process wh

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uestion 6 of 12 sapling learning Which of the following describes the process whose ultimate result is ilustrated by the multiplier (the result being that gross domestic product (GDP) increases by more than an initialincrease in spending by individuals, firms, or the government)? When people spend money, that money ends up in the pockets orbank accounts of other people (or organizations) who then use that money in some way o the spending more money they realize that govemment thinks that prices are it good time buy things O When people see other people spending money they know that the economy is about to improve, leading them to spend more money The multiplier exists because money spent today is aways more valuable than money spent in the future due to inflation and interest rates. As such, when money is spent today, its value to the economy is a multiple ofthe value to the economy of money spent in the future

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