Arrange the following steps in the correct order to explain the process of the multiplier effect:
A) Autonomous spending increases.
B) National income increases as a result of increased consumption.
C) An increase in consumption leads to a further increase in national income.
D) The cycle continues, magnifying the effect of the initial increase in spending.
1
A – B – C – D
2
D – C – B – A
3
A – C – B – D
4
B – A – D – C