An Increase in the Size of the Multiplier Can Be

question 104

Multiple Choice

An increase in the size of the multiplier can be caused by

• A) a decrease in induced expenditures.
• B) an increase in the MPS.
• C) an increase in the MPC.
• D) an increase in the marginal propensity to import.

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Definitions:

C Corporation

A legal structure for a corporation in which the owners, or shareholders, are taxed separately from the entity.

Laws of Inheritance

The principles that govern the passing of traits from one generation to the next through the transmission of genetic information.

Limited Partnership

A form of partnership where one or more partners have limited liabilities and limited involvement in the day-to-day management, while at least one partner has unlimited liability.

General Partners

Individuals or entities that manage a partnership and are personally responsible for its debts.