Identify the "oversimplified multiplier formula."
a. Multiplier = 1 divided by (1 ? change in GDP)
b. Multiplier = 1 divided by (1 ? marginal propensity to consume)
c. Multiplier = 1 divided by (1 ? marginal propensity to save)
d. Multiplier = 1 divided by (1 ? rate of inflation)
b
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a. increase; increase. b. increase; decrease. c. decrease; increase. d. decrease; decrease.
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