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    Principles of Macroeconomics
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    Exam 16: The Influence of Fiscal Policy on Aggregate Demand
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    Which of the Following Defines the Government Purchases Multiplier
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Which of the Following Defines the Government Purchases Multiplier

Question 50

Question 50

Multiple Choice

Which of the following defines the government purchases multiplier?


A) 1/MPC+ MPI
B) 1/(1 - MPC)
C) MPC/(1 - MPC)
D) (1 - MPC) /MPC

Correct Answer:

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