alleryStart learning →In macroeconomics, what does a multiplier measure?
ASize of a bank's cash reserves
BResponse of one variable to another
CRate of interest on bank loans
DShare of imports in total output
Answer & Solution
Correct answer: B. Response of one variable to another
A multiplier is the factor of proportionality linking a change in an exogenous variable to the resulting change in an endogenous variable.
Keep practising Determination of National Income
Browse all Determination of National Income questions for CA Foundation, or explore more Business Economics topics.
Related questions
Which theory of consumption did Modigliani and Brumberg propose in 1954?Which consumption theory is Milton Friedman's (1957)?Who introduced the consumption function into macroeconomics in 1936?The consumption function describes the relationship between consumption and what?In which decade was the modern theory of the multiplier developed by Kahn, Keynes and otheA plot of a variable's response to a shock over time t, t+1, t+2 is called:In the open-economy multiplier formula, the symbol m stands for the propensity to:Paul Samuelson credited which economist for inspiring his 1939 multiplier-accelerator mode