Respuesta :
The correct answer is option D.
If there is a general rise in fear of the financial system the actual multiplier will fall.
What is a financial system?
- A group of organizations that allow for the exchange of money includes banks, insurance companies, and stock exchanges.
- There are financial systems at the firm, regional, and international levels.
- In order to finance projects for either personal consumption or productive investments and to seek a return on their financial assets, borrowers, lenders, and investors trade current cash.
- In order to determine which projects are financed, who finances projects, and the conditions of financial agreements, borrowers and lenders use a variety of rules and procedures that make up the financial system.
The decision to finance consumption and investment plans is made directly by a manager or central planner in a financial system that is centrally controlled (such as one firm or a command economy).
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