The Following Table Illustrates the Multiplier Process in a Private

question 124

Multiple Choice

The following table illustrates the multiplier process in a private closed economy: Refer to the above table.The multiplier in this economy is:

• A)2
• B)4
• C)5
• D)10

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Definitions:

Goodwill

Goodwill is an intangible asset that arises when a company acquires another for a price higher than the fair value of its net identifiable assets, representing factors like brand reputation or customer relationships.

Identifiable Net Assets

The portion of a company's net assets that can be attributed to specific assets and liabilities, excluding goodwill.

Amortization Period

The length of time over which a company gradually writes off the initial cost of an intangible asset.

Patent

A legal document granted by the government giving an inventor the exclusive right to produce, use, and sell an invention for a certain period of years.