The multiplier is calculated as___________?

Related Mcqs:

1. The multiplier tells us how much __________ changes after a shift in ____________?

   A. consumption income
   B. investment output
   C. savings investment
   D. output aggregate demand

2. If the MPC is 0.5 the multiplier is ?

   A. 2
   B. 1/2
   C. 0.2
   D. 20

3. The total multiplier for the economy will reflect ?

   A. MPC and MPT
   B. MPT and MPZ
   C. MPC and MPZ
   D. MPC, MPT and MPZ

4. In an Open economy leakage to imports ____________ the value of the multiplier ?

   A. reduce
   B. increase
   C. do not change
   D. None of the above

5. If banks and the private sector decide to hold less cash the money multiplier will be ?

   A. Unchanged
   B. Larger
   C. Smaller
   D. Unstable

6. If the marginal propensity to consume on domestic products is 0.9 the size of the multiplier is ?

   A. 10
   B. 1
   C. 9
   D. 0.1

7. As the MPS increases the multiplier will ?

   A. decrease
   B. remain constant
   C. increase
   D. either increase or decrease depending on the size of the change in investment

8. If the marginal propensity of consume MPC is 0.75 the value of the multiplier is ?

   A. 4
   B. 7.5
   C. 5
   D. 0.75

9. Suppose the government increases its purchases by Rs16 billion. If the multiplier effect exceeds the crowding out effect, then ?

   A. The aggregate supply curve shifts to the right by more than Rs 16 billion
   B. The aggregate demand curve shifts to the left by more than Rs 16 billion
   C. The aggregate demand curve shifts to the right by more than Rs 16 billion
   D. the aggregate supply curve shifts to the left by more than Rs 16 billion

10. As the required reserve ratio is decreased the money multiplier ?

    A. could either increase or decrease
    B. decrease
    C. increase
    D. remain the same, as long as bank hold no excess reserves