Which of the following is the formula for the multiplier?
OA. 1-MPC O
C. 1 1-MPC
B. 1 MPC OD. MPC increase in GDP on the interest rate.
Often the multiplier formula is considered to be too simple because it ignores some real world complications. Which of the following is not such a reason?
A. The formula ignores the impact of an increase in GDP on consumption.
B. The formula ignores the impact of an increase in GDP on imports.
C. The formula ignores the impact of an O
D. The formula ignores the impact of an increase in GDP on inflation.