The Simple Multiplier

question 196

Multiple Choice

The simple multiplier:

• A)occurs only in response to a change in the level of investment spending.
• B)can be found by taking the reciprocal of the MPS.
• C)occurs only when intended investment increases as GDP increases.
• D)is measured by the slope of the saving schedule.

---

Definitions:

Differential Lock

A differential lock is a feature on some vehicles that allows both wheels on an axle to be locked together, ensuring they spin at the same speed for increased traction.

Single-reduction Axle

An axle configuration that uses a single set of gears to reduce the engine speed to the desired wheel speed, providing torque multiplication.

Axle Shafts

Used to transmit drive torque between the differential carrier assembly and the drive wheels. Also known as half shafts and driveshafts.

Air-lift Axle

An additional axle for a vehicle, which can be lowered to spread the load over more wheels or raised when not needed.