Multipliers

What formula is used to quantify the effect of a change in autonomous expenditures on aggregate demand?

• Aggregate supply formula

• Expenditure multiplier formula

• Balanced budget multiplier formula

• Tax multiplier formula

Which multiplier is used to quantify the effects of fiscal policy on aggregate demand?

• Income multiplier

• Tax multiplier

• Expenditure multiplier

• Balanced budget multiplier

What does MPC stand for in the context of fiscal policy and aggregate demand?

• Marginal Propensity to Consume

• Marginal Propensity to Save

• Monetary Policy Committee

• Market Price Change

How does a change in taxes and spending affect aggregate demand?

• By altering the interest rate

• Through the tax and spending multipliers

• By changing the investment multiplier

• By modifying the exchange rate

What does MPS stand for, and how is it related to fiscal policy?

• Marginal Propensity to Spend

• Market Price Stability

• Monetary Policy Strategy

• Marginal Propensity to Save