Which of the following multiplier concepts is most important from the point of view of devising an activist policy?
A)the income and money-creation multipliers
B)the dynamic multipliers,that is the timing of multiplier effects given a policy change
C)the long-term multipliers,that is the total effect from several time periods given a policy change
D)the money-creation multiplier

Question

Quizplus · Accepted Answer

The most important multiplier concept from the point of view of devising an activist policy is the dynamic multiplier, which refers to the timing of the multiplier effects given a policy change. This is because policymakers need to know when the effects of a policy will be felt and how long they will last in order to make informed decisions about when and how to implement policies. While the income and money-creation multipliers and the long-term multipliers are also important, they are not as crucial in the context of devising activist policies. The money-creation multiplier is also important, but it is a specific type of multiplier that may not apply to all policy contexts.

Which of the Following Multiplier Concepts Is Most Important from the Point