Which of the Following Is Equal to the Simple Multiplier

question 83

Multiple Choice

Which of the following is equal to the simple multiplier?  

• A) the marginal propensity to save 
• B) the marginal propensity to consume 
• C) the reciprocal of the marginal propensity to save 
• D) the reciprocal of the marginal propensity to consume

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Definitions:

Liquidity

The ease with which an asset can be converted into cash without significant loss in value.

Profitability

Measures how much profit a company generates in relation to its revenues, assets, or equity, indicating its financial health and efficiency.

Debt

The total amount of money owed by an individual, company, or other entity to lenders, which can include loans, bonds, mortgages, and other forms of financial liabilities.