An Increase in the Value of the Multiplier Can Be

question 107

Multiple Choice

An increase in the value of the multiplier can be caused by

• A) an increase in autonomous consumption expenditure.
• B) a decrease in the marginal propensity to consume.
• C) an increase in the marginal propensity to import.
• D) an increase in the marginal propensity to consume.

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Definitions:

Probabilistic Generalization

A statement that applies in general terms to a percentage of cases, acknowledging that exceptions may exist.

Counterexamples

Instances or cases that contradict a rule or a generalization, often used to disprove arguments.

Coincidence

An occurrence of two or more events at the same time by chance.

Correlation

A statistical measure that represents the extent to which two or more variables fluctuate together.