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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Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp
Section: Chapter Questions
Problem 7WNG
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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