The Partial Expenditure Multiplier

question 52

Multiple Choice

The partial expenditure multiplier

• A)equals the MPC.
• B)is the ratio of total increase in demand for goods to the increase in government spending.
• C)equals (1 - MPC).
• D)is the total increase in government spending.
• E)is the total increase in the demand for goods.

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Definitions:

Reliable

The quality of being consistently good in quality or performance; able to be trusted or depended upon.

Measurement Error

The variation of a number around its true mean due to uncontrolled, essentially random influences; also called error variance.

Random

Characterized by a lack of order, predictability, or specific pattern, often used to describe events or processes.

Sum to Zero

A concept or situation in which the total gain and loss are exactly balanced, resulting in a net effect of zero.