Suppose That Autonomous Consumption Increases but That, Unlike the Situation

question 22

Short Answer

Suppose that autonomous consumption increases but that, unlike the situation in the simple Keynesian model of this chapter, some of this autonomous consumption increase is spent on imports (say an amount equal to MPM times the autonomous consumption increase) in the "first round" of the multiplier process. What would this mean for the size of the open-economy multiplier in comparison to the open-economy multiplier in the text?

---

Definitions:

Genetic Screening

The testing of individuals or populations for specific genetic disorders, traits, or susceptibilities, often used to inform healthcare decisions.

Public Health Programs

Initiatives or services provided by governments or organizations aimed at promoting, protecting, and restoring the health of the population.

Multifactorial Diseases

Diseases that arise from the interaction of multiple genes and environmental factors.

Rawls's Principles

Refers to the ethical principles developed by philosopher John Rawls, including the principles of justice as fairness, the liberty principle, and the difference principle.