Question on: JAMB Economics - 2023
Multiplier can be described as
A
the ratio of change in an endogenous variable to the change spending
B
the ratio of variables that multiplies autonomous spending plus tax
C
the ratio of change in output to a change in autonomous spending
D
the ratio of variables that multiplies autonomous spending
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Correct Option: A
The multiplier is a measure of the ratio of the change in an endogenous variable (such as output or income) to the change in an exogenous variable (such as autonomous spending).
The multiplier concept is often used in economics to analyze the effects of changes in spending on the overall economy.
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