3. Macroeconomics

The Keynesian Multiplier — Quiz

Test your understanding of the keynesian multiplier with 5 practice questions.

Practice Questions

Question 1

What does the Keynesian multiplier describe in macroeconomics?

Question 2

Which of the following is an example of an injection in the circular flow of income?

Question 3

If the marginal propensity to consume is $0.8$, what is the simple Keynesian multiplier?

Question 4

Which statement best explains why the multiplier is smaller when households save more of each extra dollar of income?

Question 5

A government increases spending by $100$ million and the multiplier is $4$. What is the total change in national income?