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    Principles of Macroeconomics Study Set 8
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    Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: How Fiscal Policy Influences Aggregate Demand
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    The Multiplier for Changes in Government Spending Is Calculated as
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The Multiplier for Changes in Government Spending Is Calculated as

Question 22

Question 22

Multiple Choice

The multiplier for changes in government spending is calculated as


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

Correct Answer:

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