Which of the Following Is a True Statement About the Multiplier

question 117

Multiple Choice

Which of the following is a true statement about the multiplier?

• A)The formula for the multiplier overstates the real world multiplier when we take into account the impact of changes in GDP on imports, inflation, and the interest rate.
• B)The larger the MPC, the smaller the multiplier.
• C)The multiplier is the ratio of the change in spending to the change in GDP.
• D)The multiplier makes the economy less sensitive to changes in autonomous expenditure.
• E)The multiplier only applies to changes in government spending.

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Definitions:

Thoracic Duct

The largest lymphatic vessel in the human body that drains lymph from the lower and left side of the body into the venous system.

Thymus Gland

A lymphoid organ situated in the neck which produces T-cells for the immune system, particularly active during childhood.

Axillary Lymph Nodes

Lymph nodes located in the armpit (axilla) that play a key role in filtering lymph fluid and fighting infection.

Right Lymphatic Duct

A lymphatic vessel that drains lymph from the right upper limb, right side of the thorax, and right sides of the head and neck.