If Autonomous Consumption Decreases, the Size of the Multiplier Would

question 203

Multiple Choice

If autonomous consumption decreases, the size of the multiplier would

• A) increase.
• B) decrease.
• C) remain constant.
• D) either increase or decrease depending on the size of the change in autonomous consumption.

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Definitions:

Cost-Benefit

An analysis or approach that compares the costs of an action to its benefits to determine its feasibility or value.

Internal Controls

Procedures and mechanisms put in place by a company to safeguard assets, enhance the reliability of financial reports, and ensure compliance with laws and regulations.

Benefits

Forms of non-wage compensation provided to employees in addition to their normal wages or salaries, like health insurance, pensions, and holidays.

Voucher

A document authorizing a payment, or indicating an intention to make a payment, for goods or services received.