Suppose Aggregate Output Is Demand-Determined

question 15

Multiple Choice

Suppose aggregate output is demand-determined.Which of the following will lead to an increase in the simple multiplier?

• A)an increase in the marginal propensity to consume
• B)a decrease in the marginal propensity to consume
• C)a decrease in autonomous consumption
• D)an increase in autonomous consumption
• E)an increase in investment

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Definitions:

ROA

Return on Assets, a financial ratio indicating how profitable a company is relative to its total assets, measuring how efficiently those assets are used to generate profit.

Total Asset Turnover

A ratio calculating how effectively a company utilizes its assets to produce sales income.

Return on Equity

A measure of a corporation's profitability, indicated by the amount of net income returned as a percentage of shareholders equity.