Identify the "Oversimplified Multiplier Formula

question 186

Multiple Choice

Identify the "oversimplified multiplier formula."

• A)Multiplier = 1 divided by (1 − change in GDP)
• B)Multiplier = 1 divided by (1 − marginal propensity to consume)
• C)Multiplier = 1 divided by (1 − marginal propensity to save)
• D)Multiplier = 1 divided by (1 − rate of inflation)

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