Which of the following best describes the role of fiscal policy in economic growth through the multiplier effect?

• A. Fiscal policy has no impact on economic growth as it does not affect the multiplier effect.
• B. Fiscal policy can amplify economic growth by increasing government spending, which triggers a multiplier effect.
• C. Fiscal policy only affects economic growth through changes in tax rates, not spending.
• D. Fiscal policy reduces economic growth by decreasing government spending, which triggers a multiplier effect.

Answer: (B)