[Solved] Multiplier process in economic theory is conventionally taken to mean:

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Q.	Multiplier process in economic theory is conventionally taken to mean:
A.	the manner in which prices increase
B.	the manner in which banks create credit
C.	income of an economy grows on account of an initial investment
D.	the manner in which government expenditure increases
Answer» C. income of an economy grows on account of an initial investment
Explanation: In economics, a multiplier is a factor of proportionality that measures how much an endogenous variable changes in response to a change in some exogenous variable. For example, suppose a one-unit change in some variable x causes another variable y to change by M units. Then the multiplier is M. In monetary macroeconomics and banking, the money multiplier measures how much the money supply increases in response to a change in the monetary base. The multiplier may vary across countries, and will also vary depending on what measures of money are considered. For example, consider M2 as a measure of the U.S. money supply, and MO as a measure of the U.S. monetary base.

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