What Is the Formula for the Simple Spending Multiplier

question 2

Multiple Choice

What is the formula for the simple spending multiplier?

• A) 1/(1+MPC)
• B) 1/(1-MPC)
• C) 1/(MPC-1)
• D) 1/MPC
• E) (1-MPC)/(1+MPC)

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Definitions:

Problematic Patterns

Repeated behaviors or habits that are harmful or obstructive to one's well-being or social functioning.

Jean Piaget

A Swiss psychologist known for his work on child development and cognitive theory.

Cognitive Ability

The capacity to perform various mental activities related to learning, problem-solving, decision making, and comprehension.

Emotional Ability

It refers to the capacity to recognize, understand, and manage one's own emotions and the emotions of others.