AP Macroeconomics Question 78: Answer and Explanation

Test Information

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Question: 78

4. The formula for the money multiplier is

  • A.
  • B.
  • C.
  • D.
  • E.

Correct Answer: D

Explanation:

D The money multiplier does not involve the marginal propensity to consume, which rules out (A), (C), and (E). The correct answer is .