All of the Following Are True Statements About the Multiplier

question 270

Multiple Choice

All of the following are true statements about the multiplier except:

• A)The formula for the multiplier overstates the real world multiplier when we take into account the impact of changes in GDP on imports,inflation and the interest rate.
• B)The larger the MPC,the larger the multiplier.
• C)The multiplier is the ratio of the change in real GDP to the change in autonomous expenditure.
• D)The multiplier makes the economy less sensitive to changes in autonomous expenditure.

---

Definitions:

Nuclear Pores

Large protein complexes that cross the nuclear envelope, serving as gateways that regulate the transport of molecules between the nucleus and cytoplasm.

Nucleoplasm

Semifluid medium of the nucleus, containing chromatin.

Cytoplasm

The jelly-like substance within a cell, excluding the nucleus, that contains organelles, enzymes, and the cytoskeleton, providing a site for most cellular processes.

Peptidoglycan Cell Wall

The peptidoglycan cell wall is a rigid and supportive layer found in the cell walls of most bacteria, providing structural strength and protecting against osmotic pressure.