The multiplier is defined as the ratio of a change in income to the
A)marginal propensity to save.
B)marginal propensity to consume.
C)change in the marginal propensity to consume causing it.
D)change in the marginal propensity to save causing it.
E)change in planned autonomous spending causing it.

Question

Quizplus · Accepted Answer

The multiplier is defined as the ratio of a change in income to the change in planned autonomous spending causing it. This concept is fundamental in Keynesian economics, illustrating how initial changes in spending lead to larger changes in national income.

The Multiplier Is Defined as the Ratio of a Change