What does it mean when economists suggest that in developed countries the national multiplier effect of tourism is often 1.5 to 2.0?

(1 point)
Responses

The original money spent in a location is often used again in that community up to two more times.

The original money spent in a location is often used again in that community up to two more times.

The original money spent in a location is used only once and 1.5 to 2 more people have to spend that same amount to benefit the location.

The original money spent in a location is used only once and 1.5 to 2 more people have to spend that same amount to benefit the location.

Money spent by tourists is 1.5 to 2 times more difficult to track than that spent by local residents.

Money spent by tourists is 1.5 to 2 times more difficult to track than that spent by local residents.

Tourism creates 1.5 to 2 times as much pollution as local residents do in an area.

1 answer

The correct response is:

The original money spent in a location is often used again in that community up to two more times.

This means that for every dollar spent by tourists in a developed country, it circulates within the local economy, creating additional economic activity and contributing to a total economic impact that is 1.5 to 2 times the original amount spent.