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Consumption is the largest part of GDP.

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Q: Is government spending a larger fraction of GDP than consumption?
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What is writing a fraction as an equivalent fraction with a larger denominator called?

It is called "writing a fraction as an equivalent fraction with a larger denominator"!


What is themultiplier effect?

The multiplier effect refers to the phenomenon where an initial injection of spending into the economy leads to a larger increase in overall economic activity. This occurs as the initial spending stimulates additional rounds of spending as income generated from the initial spending is re-spent by others. The multiplier effect helps magnify the impact of government spending or investment on the economy.


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When does multiplying by a fraction give an answer that is larger than that original answer?

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fixed and floating exchange rates


What type of fraction is larger than 1?

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