Derive the multiplier formula when all components are included in the aggregate demand equation. Explain your steps. (Max. 150 words)

1. Derive the multiplier formula when all components are included in the aggregate demand equation. Explain your steps. (Max. 150 words)

2. Why do countries have varying multipliers? (Max. 250 words)

3. With regard to the monetary system, explain the process of a person buying a house and how it may result in the creation of money. (Max. 200 words)

4. What is “quantitative easing” and how does it stimulate the economy? (Max. 200 words)

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