Multiplier can be described as
ECONOMICS
JAMB 2023
Multiplier can be described as
- A. the ratio of change in an endogenous variable to the change spending
- B. the ratio of variables that multiplies autonomous spending plus tax
- C. the ratio of change in output to a change in autonomous spending
- D. the ratio of variables that multiplies autonomous spending
Correct Answer: A. the ratio of change in an endogenous variable to the change spending
Explanation
A multiplier is a factor of proportionality that measures how much an endogenous variable changes in response to a change in some exogenous variable such as investment, consumption, government expediture etc.
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