All of the following statements about multiplier effect are true EXCEPT which?
◦ Island countries have very quick leakage and, therefore, very low output multipliers.
◦ The multiplier effect occurs when some of the new money from the tourist is re-spent within the local economy.
◦ The multiplier effect is the sum of direct, indirect, and induced effects.
◦ Economic variables for which economists derive multiplier values do not include taxes and imports.