Multiple Choice
Identify the "oversimplified multiplier formula."
A) Multiplier = 1 divided by (1 − change in GDP)
B) Multiplier = 1 divided by (1 − marginal propensity to consume)
C) Multiplier = 1 divided by (1 − marginal propensity to save)
D) Multiplier = 1 divided by (1 − rate of inflation)
Correct Answer:
Verified
Correct Answer:
Verified
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