The formula for the spending multiplier when variable net exports are included in aggregate expenditures is
A)1/(MPS + MPM)
B)1/MPS
C)MPS * MPM
D)1/(MPC * MPM)
E)1/(1 - MPC - MPM)

Question

Quizplus · Accepted Answer

The Answer of The formula for the spending multiplier when variable net exports are included in aggregate expenditures is
A)1/(MPS + MPM)
B)1/MPS
C)MPS * MPM
D)1/(MPC * MPM)
E)1/(1 - MPC - MPM)

The Formula for the Spending Multiplier When Variable Net Exports