When all the factors of aggregate expenditure are influenced by income, the mult

Question

When all the factors of aggregate expenditure are influenced by income, the multiplier becomes a function of the:

marginal propensity of government purchases.

marginal propensity to consume out of disposable income.

marginal propensity of aggregate expenditure.

marginal propensity to import.

marginal propensity to invest.

marginal propensity of government purchases.

marginal propensity to consume out of disposable income.

marginal propensity of aggregate expenditure.

marginal propensity to import.

marginal propensity to invest.

Explanation / Answer

Since the expenditure is based on income and not on govt. spending oraggregate expenditure or importing or investing...

Hence, answer is marginal propensity to consume out of disposable income. = Answer

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