Multiplier can be described as
-
the ratio of change in an endogenous variable to the change spending
- the ratio of variables that multiplies autonomous spending plus tax
- the ratio of change in output to a change in autonomous spending
- the ratio of variables that multiplies autonomous spending
The correct answer is: A
Explanation
A multiplier is a factor of proportionality that measures how much an endogenous variable changes in response to a change in some exogenous variable such as investment, consumption, government expediture etc.