Which of the following best describes the effect of government spending on the economy, known as the spending multiplier?

The spending multiplier is a concept that shows how government spending can have a larger impact on the economy than the amount spent. When the government spends money, it puts more cash into people's hands, like when it builds a new road or school. This money is then used by workers and businesses to buy goods and services, which creates more income for others. For example, if the government spends $1 million on a new park, the workers who build it might spend their earnings at local shops, leading those shops to hire more staff. This ripple effect means that the initial spending can lead to a much bigger overall increase in economic activity.