The multiplier is
A. the percentage of a given change in income that goes towards consumption.
B. the part of consumption that is independent of the level of disposable income.
C. the number which is multiplied by an autonomous change which gives the change in the equilibrium level of real GDP.
D. the proportion of total disposable income that is consumed.
Answer: C
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Capital deepening shifts the output (or production function) curve upward to the right
Indicate whether the statement is true or false
Suppose the marginal propensity to consume in an economy is 0.9. What would be the Keynesian multiplier in this economy?
Select one: a. 0.1 b. 2 c. 5 d. 10
Refer to the accompanying table. Pat's opportunity cost of delivering a pizza is making: Pizzas Made Per HourPizzas Delivered Per HourCorey126Pat1015
A. 2/3 of a pizza. B. 12 pizzas. C. 10 pizzas. D. 3/2 of a pizza.
If the government imposes a price ceiling that is lower than the market clearing price, then
A) consumer surplus will increase while producer surplus will decrease. B) consumer surplus will decrease while producer surplus will increase. C) both consumer surplus and producer surplus will decrease. D) both consumer surplus and producer surplus will increase.