check your understanding: cuba expected to become hot tourist destination for americans - question 2\n3…

check your understanding: cuba expected to become hot tourist destination for americans - question 2\n3 tries left\n2. with the opening of cuba to american tourists, locals, especially those who live and work in the old havana area, noticed an increase in spending, and as a result, more jobs were also created. this process of new money entering the local economy, job creation, and additional spending is known as the \n\na. multiplier effect.\nb. multiplier reaction.\nc. growth factor.\nd. interdependency effect.

check your understanding: cuba expected to become hot tourist destination for americans - question 2\n3 tries left\n2. with the opening of cuba to american tourists, locals, especially those who live and work in the old havana area, noticed an increase in spending, and as a result, more jobs were also created. this process of new money entering the local economy, job creation, and additional spending is known as the \n\na. multiplier effect.\nb. multiplier reaction.\nc. growth factor.\nd. interdependency effect.

Answer

Brief Explanations:

The multiplier effect in economics refers to the proportional amount of increase or decrease in final income that results from an injection or withdrawal of spending. When new money enters an economy (such as American tourists spending in Cuba), it leads to job creation and further rounds of spending, which is the multiplier effect.

Answer:

A. Multiplier effect