If autonomous expenditure remains constant, and there is a decrease in the proportion of aggregate disposable income consumed in the economy, then... A) equilibrium income will be reduced and the multiplier will be increased. B) equilibrium income will be increased. and the multiplier will be increased. C) equilibrium income will be reduced and the multiplier will be reduced. D) equilibrium income will be increased and the multiplier will be reduced. E) equilibrium income will be increased and the multiplier will remain unchanged.

If autonomous expenditure remains constant, and there is a decrease in the proportion of aggregate disposable income consumed in the economy, then... A) equilibrium income will be reduced and the multiplier will be increased. B) equilibrium income will be increased. and the multiplier will be increased. C) equilibrium income will be reduced and the multiplier will be reduced. D) equilibrium income will be increased and the multiplier will be reduced. E) equilibrium income will be increased and the multiplier will remain unchanged.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter9: Aggregate Expenditures

Section: Chapter Questions

Problem 10E

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