Examlex
Which of the following statements regarding ET is true?
MPC
Marginal Propensity to Consume, the fraction of additional income that is spent on consumption.
Multiplier
In economics, it refers to the factor by which gains in total output are greater than the change in spending that caused it, often associated with fiscal and monetary policy impacts.
MPC
The marginal propensity to consume, which represents the proportion of an increase in income that gets spent on consumption.
Government Spending
Expenditures by government entities on goods and services, including infrastructure, public services, and social welfare programs.
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