In the Simple Keynesian Cross Model with No Government or Foreign

question 25

Multiple Choice

In the simple Keynesian cross model with no government or foreign sectors, the value of the multiplier is defined as

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

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Definitions:

Opportunity

A set of circumstances that makes it possible to do something or for something to happen.

Ability

The possession of the means or skill to do something effectively and efficiently.

Negotiators

Individuals or parties involved in discussions aimed at reaching an agreement or resolving a dispute through dialogue and compromise.

Concessions

Concessions are compromises or adjustments made by one party in negotiations, often to reach an agreement or resolve a dispute.