Which of the following increases the size of the expenditure multiplier?a.a decrease in the marginal propensity to consumeO b. a decrease in the marginal propensity to importО с.an increase in investmentO d. an increase in autonomous spending

Expenditure multiplier means how much times income will change due to change in expenditure . It…

Which of the following increases the size of the expenditure multiplier? a. a decrease in the marginal propensity to consume b. a decrease in the marginal propensity to import O C. an increase in investment O d. an increase in autonomous spending

Which of the following increases the size of the expenditure multiplier? a. a decrease in the marginal propensity to consume b. a decrease in the marginal propensity to import O C. an increase in investment O d. an increase in autonomous spending

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 5.12P

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Question

Which of the following increases the size of the expenditure multiplier?
a.
a decrease in the marginal propensity to consume
O b. a decrease in the marginal propensity to import
О с.
an increase in investment
O d. an increase in autonomous spending

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