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Income Determination & the Multiplier · Question 29 of 58

Question 29

EasyOriginal question

The investment multiplier is

1 ÷ MPCCorrect answerYour answer1 − MPCCorrect answerYour answer1 ÷ (1 − MPC)Correct answerYour answerMPC ÷ MPSCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

k = ΔY ÷ ΔI = 1 ÷ (1 − MPC) = 1 ÷ MPS.

Concept: Investment multiplier
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsThe investment multiplier

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