The Most Important Determinant of Any Multiplier in the Keynesian

question 16

Multiple Choice

The most important determinant of any multiplier in the Keynesian model is

• A)the level of planned investment.
• B)the level of unemployment.
• C)the marginal propensity to consume.
• D)the level of excess demand.

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Definitions:

Trial Balance

A financial spreadsheet where all ledger balances are gathered into columns for debits and credits, ensuring both totals match.

Debit Column

The left-hand side of a ledger account, recording increases in assets and expenses, and decreases in liabilities, equity, and revenue.

Expense Recognition Principle

An accounting principle that dictates expenses should be recognized in the period in which they are incurred to earn revenues.

Efforts

The use of physical or mental energy to achieve tasks and goals.