What Is the Calculation for the Simplified Spending Multiplier

question 82

Multiple Choice

What is the calculation for the simplified spending multiplier?

• A) 1/(1 − MPC)
• B) −1/(1 − MPC)
• C) −MPC/(1 − MPC)
• D) (1 − MPC) × − MPC

---

Definitions:

Hopeless

A state of despair in which an individual perceives little or no possibility of overcoming a situation, often associated with depression.

Rumination

The compulsive focused attention on the symptoms of one's distress, and on its possible causes and consequences, as opposed to its solutions.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Clinical Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.