Which of the Following Best Describes the Simple Spending Multiplier

question 38

Multiple Choice

Which of the following best describes the simple spending multiplier?

• A)It shows the magnified change in planned aggregate spending that arises from a change in output.
• B)It shows the magnified change in equilibrium output demanded that arises from a change in income.
• C)It shows the magnified change in planned aggregate spending that arises from a change in equilibrium output.
• D)It shows the magnified change in equilibrium output demanded that arises from a given initial change in planned aggregate spending.
• E)It shows the change in planned aggregate spending that arises from a change in real output.

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Definitions:

Variance

A measure of the dispersion or how spread out numbers are in a dataset.

Interquartile Range

A measure of statistical dispersion, representing the difference between the 25th and 75th percentiles of a dataset.

Variance

A measure of the dispersion or spread of a set of data points, calculated as the average of the squared deviations from the mean.

Degrees of Freedom

The count of data points in a statistical calculation that can change independently.