The Multiplier Effect- Macro Topic 3.2

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Business
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11th Grade - University
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Hard
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7 questions
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1.
OPEN ENDED QUESTION
3 mins • 1 pt
Explain the difference between the spending multiplier and the money multiplier.
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2.
OPEN ENDED QUESTION
3 mins • 1 pt
What is the multiplier effect and how does it impact the economy?
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3.
OPEN ENDED QUESTION
3 mins • 1 pt
How does the marginal propensity to consume (MPC) affect the size of the multiplier?
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4.
OPEN ENDED QUESTION
3 mins • 1 pt
What is the equation for the simple spending multiplier?
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5.
OPEN ENDED QUESTION
3 mins • 1 pt
Describe the tax multiplier and how it compares to the spending multiplier.
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6.
OPEN ENDED QUESTION
3 mins • 1 pt
What role do banks play in the money multiplier effect?
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7.
OPEN ENDED QUESTION
3 mins • 1 pt
How would an increase in the reserve requirement affect the money multiplier?
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