The Total Government Expenditure Multiplier

question 40

Multiple Choice

The total government expenditure multiplier

• A) is the ratio of total increase in real output to the increase in government spending.
• B) is the total increase in the demand for goods.
• C) equals
• D) is the ratio of total increase in demand for goods to the increase in government spending.
• E) equals the MPC.

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Definitions:

HMO

Health Maintenance Organization, a type of health insurance plan that requires members to receive healthcare services from a network of designated providers.

Providers

Entities or individuals that supply services or goods.

Medicare

A federal health insurance program in the United States for people aged 65 and older, and for some younger people with disabilities.

Brand Name Drugs

Medications sold under a proprietary, trademarked name, as opposed to their generic equivalents.