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Jet001 [13]
2 years ago
15

Read this excerpt from a speech by televangelist Jerry Falwell, 1980.

Advanced Placement (AP)
1 answer:
IrinaVladis [17]2 years ago
6 0
Explanation is

in a file
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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:

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