Economics: Principles and Policy (MindTap Course List)
13th Edition
ISBN: 9781305280595
Author: William J. Baumol, Alan S. Blinder
Publisher: Cengage Learning
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Chapter 28.A, Problem 2DQ
To determine
The pros and cons of having a higher or lower multiplier.
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Give an example of any factor that influences the size of the multiplier?
Give an example of any factor that influence the size of the multiplier
Which best describes why the multiplier exist
Chapter 28 Solutions
Economics: Principles and Policy (MindTap Course List)
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- There might be many factors (economic and non-economic) that affect the size of the multiplier. What are some that you think could influence its size? Which ones do you think would make it larger, and which are more likely to make it smaller?arrow_forwardWhat is the definition for the multiplier processarrow_forwardWhen price level is considered, the value of the multiplier will be less than that suggested by the over simplified version of multiplier. Why?arrow_forward
- Is the mpc in the multiplier .75? only because multiplier is 1/(1-mpc) which would make sense for .25 1-.75=.25 however what is mps?arrow_forwardWhich of the following is a true statement about the multiplier? 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. The larger the MPC, the smaller the multiplier. The multiplier is the ratio of the change in spending to the change in GDP. The multiplier makes the economy less sensitive to changes in autonomous expenditure.arrow_forwardExplain the concept of the 100X Multiplier using the idea of diminishing marginal utility.arrow_forward
- i need the answer quicklyarrow_forwardDescribe the multiplier effect and its effects on the economy of a tourism destination. Use your own words and povide at least two examples.arrow_forwardI'm doing economics homework and I'm being asked to find the multiplier when the MPS is 0.12 and MPC is 0.88. I'm trying to follow the formula and not sure where I'm getting lost.arrow_forward
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