What Is the Definition of the Simple Multiplier

question 139

Multiple Choice

What is the definition of the simple multiplier?  

• A) 1.0 divided by the marginal propensity to save 
• B) 1.0 divided by the marginal propensity to consume 
• C) the MPS plus the MPC 
• D) the MPS minus the MPC

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Definitions:

Best-Fitting Line

A line through a scatter plot of data points that best expresses the relationship between those points.

Observed Errors

The discrepancies between measured values and their true, expected, or theoretical values.

Systematic Risk

The risk inherent to the entire market or market segment, not reducible by diversification.

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The cost of purchasing a share of a public company's stock, which fluctuates based on market demand and other factors.