The multiplier is ? a. the ratio of government debt to income b. the ratio of an increase in consumer spending to an increase in GDP c. the ratio of the total increase in GDP to an initial increase in exogenous spending (e.g. investment or government spending, if these are assumed not to depend on GDP) d. the ratio of the money supply to nominal expenditure
The multiplier is ? a. the ratio of government debt to income b. the ratio of an increase in consumer spending to an increase in GDP c. the ratio of the total increase in GDP to an initial increase in exogenous spending (e.g. investment or government spending, if these are assumed not to depend on GDP) d. the ratio of the money supply to nominal expenditure
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp
Section: Chapter Questions
Problem 7WNG
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Question
The multiplier is ?
a.
the ratio of government debt to income
b.
the ratio of an increase in consumer spending to an increase in GDP
c.
the ratio of the total increase in GDP to an initial increase in exogenous spending (e.g. investment or government spending, if these are assumed not to depend on GDP)
d.
the ratio of the money supply to nominal expenditure
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