How Is the Multiplier Calculated

question 26

Multiple Choice

How is the multiplier calculated?

• A)(1 - MPC) / 1
• B)1 / (change in MPC)
• C)1 / (1 - MPC)
• D)1 / MPC

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Definitions:

John Maynard Keynes

A British economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments.

Economic Theories

A set of principles that explain the workings of and interactions within economies, influencing policies and understanding of wealth distribution.

Balanced Budgets

Financial planning or policy where total revenues are equal to or greater than total expenses within a specific period, preventing deficits.

Feminism

A socio-political movement aiming for the equality of the sexes, especially in terms of rights and opportunities.