Which of the Following Equations Defines the Multiplier

question 6

Multiple Choice

Which of the following equations defines the multiplier?

• A)1 - b
• B)1 - (c ÷ Y_D).
• C)1 ÷ (1 - MPC).
• D)1 ÷ APS.

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Definitions:

Technological Change

The overall process of invention, innovation, and diffusion of technology or processes.

Margin

The difference between the cost of a product and its selling price, or the difference between any two indicators in finance.

Productivity

A measure of the efficiency of production, often quantified as the ratio of inputs to outputs in the creation of goods and services.

Economic Analysis

The systematic approach to determining the most efficient use of resources, which includes researching, analyzing, and applying economic theories and practices.