The oversimplified formula for the multiplier yields a number that is too large due to the exclusion of
A)variable imports.
B)changes in the price-level.
C)income taxes.
D)all of the above.

Question

Quizplus · Accepted Answer

The oversimplified formula for the multiplier often yields a number that is too large because it typically does not account for variable imports, changes in the price level, and income taxes, all of which can dampen the multiplier effect.

The Oversimplified Formula for the Multiplier Yields a Number That