Multiplier Effect

Multiplier Effect

12th Grade

30 Qs

quiz-placeholder

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Multiplier Effect

Multiplier Effect

Assessment

Quiz

Social Studies

12th Grade

Practice Problem

Medium

Created by

Julia Peters

Used 2+ times

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30 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

10 sec • 1 pt

1. What is the formula for the simple multiplier?

1 / MPS
1 / MPC
MPC / MPS
MPS / MPC

2.

MULTIPLE CHOICE QUESTION

10 sec • 1 pt

2. What does MPC stand for?

Marginal Purchase Cost
Maximum Price Cap
Marginal Propensity to Consume
Market Price Coefficient

3.

MULTIPLE CHOICE QUESTION

10 sec • 1 pt

3. If MPC is 0.75, what is the multiplier?

4
1.33
0.25
3

4.

MULTIPLE CHOICE QUESTION

10 sec • 1 pt

4. What happens to the multiplier if MPC increases?

It stays the same
It decreases
It increases
It becomes negative

5.

MULTIPLE CHOICE QUESTION

10 sec • 1 pt

5. What does MPS stand for?

Market Price Support
Marginal Price Spend
Marginal Propensity to Spend
Marginal Propensity to Save

6.

MULTIPLE CHOICE QUESTION

10 sec • 1 pt

6. If MPS is 0.2, what is the multiplier?

2
5
10
0.2

7.

MULTIPLE CHOICE QUESTION

10 sec • 1 pt

7. What is the effect of a higher MPS on the multiplier?

Multiplier increases
Multiplier decreases
No effect
Government spending rises

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