Multiple Choice
The multiplier can be calculated by dividing:
A) The initial change in spending by the change in real GDP
B) The change in real GDP by the initial change in spending
C) One by one minus the marginal propensity to save
D) One by one minus the marginal propensity to invest
Correct Answer:

Verified
Correct Answer:
Verified
Q32: Personal saving is equal to:<br>A) Disposable income
Q34: A firm invests in a new machine
Q34: If the real rate of interest increases,
Q36: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4895/.jpg" alt=" Refer to the
Q37: The variability of business profits:<br>A) Helps explain
Q39: All of the following statements about consuming
Q40: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4895/.jpg" alt=" Refer to the
Q86: If households see the value of their
Q106: The Great Recession of 2007-2009 caused a
Q197: The multiplier value is the reciprocal of