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Question
The expenditure multiplier is the ratio of ______.
Options
the change in equilibrium output to a change in the monetary base.
the change in the money supply to a change in the monetary base.
the change in the money supply to a change in the autonomous expenditure.
the change in equilibrium output to a change in the autonomous expenditure.
MCQ
Fill in the Blanks
Solution
The expenditure multiplier is the ratio of the change in equilibrium output to a change in the autonomous expenditure.
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Classification of Expenditure
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