Which Formula MOST Accurately Depicts the Expenditure Multiplier

question 75

Multiple Choice

Which formula MOST accurately depicts the expenditure multiplier?

• A) 1/(1- MPS)
• B) 1/(MPC - 1)
• C) 1/(1 - MPC)
• D) 1/(1 + MPC)

---

Definitions:

Promotion

The act of advancing someone to a higher position or rank, often associated with increased responsibilities and benefits.

Salary

Fixed regular payment, typically on a monthly or biweekly basis, made by an employer to an employee, especially professional or white-collar workers.

Relative Deprivation

The feeling of dissatisfaction or injustice from perceiving oneself as worse off compared to others.

Satisfaction

A feeling of pleasure or fulfillment resulting from achieving a desire or need.