In Order to Simplify the Equation for the Multiplier to Its

Multiple Choice

In order to simplify the equation for the multiplier to its familiar,relatively simple form,we make use of the

A) assumption that increases in government purchases have no effect on consumer spending.
B) assumption that the feedback effects associated with changes in government purchases become negligible after two or three rounds of spending have occurred.
C) empirical evidence that points to a value of about 3/4 for the MPC.
D) fact that the multiplier effect is represented by an infinite geometric series.