Which of the Following Defines the Government Purchases Multiplier

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

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Definitions:

Accounts Payable Subsidiary Ledger

A ledger containing all account details of amounts owed by a business to its suppliers or creditors, facilitating more detailed tracking alongside the general ledger.

Payment For Supplies

The monetary expenditure for obtaining supplies necessary for the operation of a business.

Monthly Adjustment

A routine accounting process for updating financial statements and records to reflect changes and transactions that occurred within a month.

Supplies Used

The amount of materials and goods utilized during a specific period for the operation of a business.