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.
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Any other numbers I mean like what you mean
(A) Corona, chromosphere, photosphere
<u>Explanation:</u>
- Photosphere - it is the Sun’s deepest layer, and the layer visible to human eyes directly from the Earth. It is also called the solar surface
- Chromosphere - This layer of the Sun is located between 250 miles and 1300 miles above the photosphere. The chromosphere has temperatures around 4000K at the base, and 8000K at the top.
- Transition Region - This layer is very thin with a size of about 60 miles, and it is present between corona and the chromosphere.
- Corona - This layer is the Sun’s outermost layer. It starts at roughly 1300 miles over the photosphere and it has no upper limit. Its temperature is between 500,000 K to 1 million K.