The Multiplier for Changes in Government Spending Is Calculated as

question 164

Multiple Choice

The multiplier for changes in government spending is calculated as

• A) 1/MPC.
• B) 1/1 - MPC).
• C) MPC/1 - MPC).
• D) 1 - MPC)/MPC.

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Definitions:

Inventories

The complete list of items such as products, goods in production, or materials that a company holds, intended for sale or use in the production process.

Current Liabilities

Short-term financial obligations that are due within one fiscal year or the operating cycle of a business, whichever is longer.

Cash at Bank

The amount of liquid assets or cash that a company or individual has deposited in a banking institution.

Net Income

The total earnings of an organization after subtracting all expenses, taxes, and costs from its total revenue.