Swagman University is trying to convince taxpayers that the tax dollars spent at Swagman University are well spent. One of the university's arguments is that for every $1 spent by Swagman University an additional $5 of expenditures are generated within the economy. Swagman University is arguing that the multiplier for their expenditures is:

Question

Quizplus · Accepted Answer

The multiplier is the ratio of the total change in spending to the initial change in spending. In this case, the initial change in spending is $1, and the total change in spending is $5, so the multiplier is 5.

Swagman University Is Trying to Convince Taxpayers That the Tax