What is the formula for the simple expenditure multiplier in a closed economy with no government or foreign trade?

MM-1A

Quiz
•
Social Studies
•
University
•
Easy

Wynne Hom
Used 7+ times
FREE Resource
10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
1 / (1 - MPC)
1 / (MPC)
1 - MPC
1 / (MPS)
2.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
If the marginal propensity to consume (MPC) is 0.8, what is the value of the expenditure multiplier?
4
5
2
1.25
3.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
Which of the following would increase the value of the expenditure multiplier?
An increase in taxes
A decrease in the MPC
An increase in the MPC
An increase in imports
4.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
When MPC = 0.6, how much would total spending increase if autonomous spending increases by $100?
$150
$250
$400
$500
5.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
If the expenditure multiplier is 4, which of the following is the MPC?
0.2
0.25
0.5
0.75
6.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
Why does the expenditure multiplier occur in an economy?
Because changes in aggregate demand directly change output.
Because initial spending leads to multiple rounds of spending.
Because changes in government spending impact only GDP.
Because inflation remains constant.
7.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
If MPC = 0.9, and investment spending increases by $200 million, what is the total increase in GDP?
$1,000 million
$900 million
$2,000 million
$1,800 million
Create a free account and access millions of resources
Similar Resources on Quizizz
10 questions
Understanding UK Democracy and Parliament

Quiz
•
5th Grade - University
10 questions
Chapter 7 PAD102

Quiz
•
University
15 questions
Real GDP

Quiz
•
12th Grade - University
15 questions
AP Macro Economics Unit 5

Quiz
•
12th Grade - University
15 questions
Macroeconomic Multipliers and Graphs Quiz

Quiz
•
12th Grade - University
9 questions
AGGREGATE DEMAND AND SUPPLY

Quiz
•
11th Grade - University
10 questions
Aggregate Supply & Demand

Quiz
•
University
15 questions
Human Development and HDI

Quiz
•
10th Grade - University
Popular Resources on Quizizz
25 questions
Equations of Circles

Quiz
•
10th - 11th Grade
30 questions
Week 5 Memory Builder 1 (Multiplication and Division Facts)

Quiz
•
9th Grade
33 questions
Unit 3 Summative - Summer School: Immune System

Quiz
•
10th Grade
10 questions
Writing and Identifying Ratios Practice

Quiz
•
5th - 6th Grade
36 questions
Prime and Composite Numbers

Quiz
•
5th Grade
14 questions
Exterior and Interior angles of Polygons

Quiz
•
8th Grade
37 questions
Camp Re-cap Week 1 (no regression)

Quiz
•
9th - 12th Grade
46 questions
Biology Semester 1 Review

Quiz
•
10th Grade