Which of the Following Is True About the Multiplier

question 2

Multiple Choice

Which of the following is true about the multiplier?

• A) Its measures the relationship between an increase in spending and an increase in inflation
• B) Its measures the relationship between an increase in spending and an increase in imports
• C) The size of the multiplier will be bigger if the marginal propensity to consume is bigger
• D) The size of the multiplier will be bigger if the marginal propensity to import is bigger

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Definitions:

Gram-variable

Bacteria that do not consistently stain as either Gram-positive or Gram-negative due to variations in their cell wall structures.

Opaqueness

The quality of being impenetrable by light; not transparent or translucent.

Decant

To pour a liquid from one container into another, usually to separate a solid from a liquid or to allow sediment to stay behind.

Clarity

The quality of being coherent and intelligible, or clear in thought or expression.