Question

OSWAAL
. The multiplier is affected by
(i) Income and consumption
(ii) Savings and consumption
(iii) Expenditure and Exports
(iv) Income and Expenditure​

Answer 1

Explanation:

The size of the multiplier is determined by what proportion of the marginal dollar of income goes into taxes, saving, and imports. These three factors are known as “leakages,” because they determine how much demand “leaks out” in each round of the multiplier effect.