(1) The multiplier effect refers to any change in one part of our economic system that creates changes elsewhere.
(2) For example, if a university decides to build a new dormitory, some construction workers will have more income. (3) If
some of these workers decide to spend the extra income on new boats, boat-builders will have more income. (4) The
boat-builders, in turn, might spend this income in neighborhood restaurants, and the restaurant owners might spend it on
cars. (5) Money never stays in one place, and every market decision has an impact on other markets.
10. Which set of study notes below is the best summary of the supporting details in this textbook excerpt?
Study notes: Multiplier effect-Any change in one part of our economic system that creates changes elsewhere. Example
a. The decision to build a new university dormitory will lead to work for some construction workers.
b. Our economic system is very complicated.
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c. Building a dorm allows construction workers to buy boats, giving boat-builders money for restaurants, and so on.
5 of 9 answers correct O

1 The multiplier effect refers to any change in one part of our economic system that creates changes elsewhere 2 For example if a university decides to build a class=

Respuesta :

The set of study notes that is the best summary of the supporting details is "Building a dorm allows construction workers to buy boats, giving boat-builders..."

What are supporting details?

Supporting details are pieces of information provided in a text in order to make a claim, argument or explanation stronger. In the text we are analyzing here, the author is explaining what the multiplier effect is. To do so, he or she provides some supporting details, that is, some examples of how money circulates.

Now, we must choose which set of study notes is the best summary of those supporting details:

  • We can eliminate option A because it only mentions the first part of the supporting details, which means it does not convey the idea of how money truly circulates.
  • We can eliminate option B because it does not summarize the supporting details at all, but simply states an opinion.
  • Option C is the best answer. It provides more than just the first part of the supporting details and indicates with "so on" that the money keeps on circulating.

With the information above in mind, we can conclude that option C is the correct answer.

Learn more about supporting details here:

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