Transfer payments generates multipier effect, is concept created by  A. Keynes  B. Adam Smith  C. Amartya Sen  D. Ruvhir Sharma

The concept of the multiplier effect, particularly in the context of transfer payments, is primarily associated with John Maynard Keynes.

Explanation:

1. Keynesian Economics: Keynes introduced the idea that government spending (including transfer payments) can stimulate economic activity. When individuals receive transfers, they tend to spend a portion of that money in the economy, leading to increased demand for goods and services.

2. Multiplier Effect: This effect occurs because an initial change in spending leads to a larger overall increase in economic activity. For example, if the government gives out welfare payments, the recipients will spend part of that money on goods and services, which in turn increases the revenue for businesses. These businesses may then hire more workers or invest further, creating a cycle of economic expansion.

3. In Contrast to Others:

   • Adam Smith is known for classical economics and the idea of the invisible hand, but not specifically the multiplier effect.
   • Amartya Sen has contributed significantly to welfare economics and development theories but is not known for introducing the multiplier concept.
   • Ruvhir Sharma is less recognized in classical economic theories.

Conclusion:

Based on the aforementioned points, the correct answer is A. Keynes.