Video and Questions: Macro Unit 3.2-Multipliers
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Last updated 11 months ago
5 questions
1
In your own words, describe the multiplier effect.
In your own words, describe the multiplier effect.
1
Match the following.
Match the following.
| Draggable item | arrow_right_alt | Corresponding Item |
|---|---|---|
APC | arrow_right_alt | Marginal Propensity to Save |
MPS | arrow_right_alt | Marginal Propensity to Consume |
APS | arrow_right_alt | Average Propensity to Save |
MPC | arrow_right_alt | Average Propensity to Consume |
1
MPC+MPS has to equal one because there are only two things you can do with new income, spend or consume.
MPC+MPS has to equal one because there are only two things you can do with new income, spend or consume.
1
What is the formula for the spending multiplier?
What is the formula for the spending multiplier?
1
If MPC is 0.9, what is the simple spending multiplier?
If MPC is 0.9, what is the simple spending multiplier?