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:

Direct Right

This term is not commonly defined in legal or regulatory contexts; without further context, it might not refer to a widely recognized concept. NO.

Express Warranties

Express Warranties are explicit guarantees made by a seller about the quality, condition, or performance of a product, which become part of the sales contract.

Assignment

The transfer of rights or property from one party to another.

Agreement

A mutual understanding or arrangement, typically formalized by a contract, between two or more parties.