1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anna35 [415]
9 months ago
5

Which of the following is the formula for the multiplier?

Advanced Placement (AP)
1 answer:
Goryan [66]9 months ago
3 0

The formula to determine the multiplier(M) is:

M = 1 / (1 – MPC)

where:

MPC=Marginal propensity to consume

What Is a Multiplier?

A multiplier is a broad term in economics that refers to an economic factor that, when increased or changed, causes increases or changes in many other related economic variables. In terms of GDP, the multiplier effect causes total output gains to be greater than the change in spending that caused it.

Typically, the term multiplier refers to the relationship between government spending and total national income. The deposit multiplier is another multiplier used to explain fractional reserve banking.

Often the multiplier formula is considered to be too simple because it ignores some real-world complications. The Reason is:

Option A. The formula ignores the impact of an increase in GDP on consumption.

To know more about multiplier, visit: brainly.com/question/15883095

#SPJ13

You might be interested in
Alcohol is the most popular recreational drug in the United States. Please select the best answer from the choices provided T F
Mandarinka [93]

I would say that the answer is true

7 0
3 years ago
Read 2 more answers
Describe in your own words the addition of Thomas Jefferson to the musical. What is his character's purpose. What do you think a
vladimir2022 [97]
Satan is always the answer trust me its the truth
3 0
2 years ago
What is 1000000000000000000 divided by 17 +27045
VLD [36.1K]

Answer:

5.88235294E16

Explanation:

7 0
3 years ago
(1) While dogs are highly social and easily trained, with an innate desire to please, cats are . . . well, cats. (2) But both ha
Alexandra [31]

Answer:

B

Explanation:

3 0
3 years ago
More than 50% of teenage motor vehicle crashes occur on Friday Saturday and Sunday TRUE OR FALSE
satela [25.4K]
The answer would be true

8 0
2 years ago
Other questions:
  • The ASE certification system uses _______ testing and an evaluation of on-the-job experience to confirm that a technician meets
    8·2 answers
  • What type of materials would make an efficient aquifer
    12·2 answers
  • Why do some lenders require borrowers to secure credit?
    8·2 answers
  • True or false. Students with a Learners License may not receive a motorcycle endorsement.
    13·2 answers
  • Place in correct order the 6 plots of story,,,,,!!!!! Please please help yb
    5·1 answer
  • Where is the skill of factoring used or applied in the real world, work force or nature?
    6·1 answer
  • Why is it hard to set static boundaries for regions?
    12·1 answer
  • What was the outcome of the Fourth Crusade?
    11·1 answer
  • Select the corresponding communication style for the following sentence: "You've done so well for someone with your background."
    7·2 answers
  • SAQ: (pg:291c) Read the question carefully and write a short response. Use complete sentences (hint: each of the three parts sho
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!