The Simple Multiplier,which Applies to Short-Run Situations in Which the Price

question 118

Multiple Choice

The simple multiplier,which applies to short-run situations in which the price level is constant,describes changes in

• A)investment induced by changes in equilibrium income.
• B)saving caused by changes in desired investment.
• C)the equilibrium level of national income caused by changes in autonomous expenditure.
• D)the equilibrium rate of interest caused by changes in the demand for credit.
• E)employment induced by changes in equilibrium income.

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