Which of the Following Is a True Statement About the Multiplier

question 14

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.

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Definitions:

Health Inequity

Health inequity refers to unfair and avoidable differences in health status seen within and between different populations.

Systematic Disparities

Structural inequalities entrenched in societal systems that lead to unequal outcomes for different groups based on race, economic status, or other characteristics.

Poverty

A socioeconomic condition characterized by a severe lack of financial resources and access to basic needs.

Health Differences

The variability in health status and health outcomes among different populations, often influenced by social, economic, and environmental factors.