Identify the "oversimplified multiplier formula."
a. Multiplier = 1 divided by (1 ? change in GDP)
b. Multiplier = 1 divided by (1 ? marginal propensity to consume)
c. Multiplier = 1 divided by (1 ? marginal propensity to save)
d. Multiplier = 1 divided by (1 ? rate of inflation)
b
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The manner in which a nation's economy reacts when the measured factors are changed affects almost every individual
Indicate whether the statement is true or false
The South's post-Civil War (1861–1865) backwardness was due to all of the following, according to Hughes and Cain (2011), except
(a) Extensive wartime destruction of life and wealth (b) The fiscal disaster of the Confederacy, whereby nine-tenths of the state banks of the South vanished (c) The price of cotton, which did not fall, but did fail to increase as it had prior to the Civil War (1861–1865), thus turning cotton into a less profitable crop (d) The sharecropping system's failure to provide incentives for innovation in agriculture