Assertion (A): The multiplier process comes to an end even though each round adds some income.
Reason (R): Part of every round's new income leaks into saving, so each round is smaller than the one before.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

The rounds form a shrinking series whose total is finite: ΔI × 1 ÷ (1 − MPC). R explains A.

Concept: Why the process ends
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsThe multiplier round by round

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Assertion (A): The multiplier process comes to an end even though each round adds some income.Reason (R): Part of every round's new income leaks into saving, so each round is smaller than the one before.

Explanation

Assertion (A): The multiplier process comes to an end even though each round adds some income.
Reason (R): Part of every round's new income leaks into saving, so each round is smaller than the one before.