Who developed the concept of the multiplier in economics?

Economic Concepts and Circular Flow

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Business
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11th - 12th Grade
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Hard

Patricia Brown
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10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
David Ricardo
Milton Friedman
John Maynard Keynes
Adam Smith
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In the circular flow of income model, what role do financial institutions play?
They lend money to businesses for investment.
They set government policies.
They produce goods and services.
They consume goods and services.
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is an injection in the context of the circular flow of income?
An increase in investment or spending
A reduction in government spending
An increase in savings
A decrease in aggregate demand
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How does a decrease in interest rates affect business investment?
It leads to higher taxes.
It increases business investment.
It decreases business investment.
It has no effect on business investment.
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What happens to the circular flow of income when there is an increase in business investment?
It increases household income and consumption.
It decreases household income.
It remains unchanged.
It leads to higher taxes.
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does the marginal propensity to consume (MPC) represent?
The amount of taxes paid
The total income of an individual
The proportion of income spent on consumer products
The proportion of income saved
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
If an individual's MPC is 0.8, what is their marginal propensity to save (MPS)?
0.2
0.8
1.0
0.5
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