The multiplier tells us how much __________ changes after a shift in _____

(a)

Consumption, income

(b)

investment, output

(c)

savings, investment

(d)

output, aggregate demand

The multiplier is calculated as

(a)

1/(1-MPC)

(b)

1/MPS

(c)

1/MPC

(d)

a and b

It the MPC is 0.5, the multiplier is ____________

(a)

2

(b)

1/2

(c)

0.2

(d)

20

According to Keynes, investment is a function of the MEC and _________

(a)

Demand

(b)

Supply

(c)

Income

(d)

Rate of interest

The term MEC was introduced by

(a)

Adam Smith

(b)

J.M. Keynes

(c)

Ricardo

(d)

Malthus