If Autonomous Spending Decreases, Then

question 63

Multiple Choice

If autonomous spending decreases, then

• A) the expenditure multiplier means that equilibrium expenditure decreases by a larger amount.
• B) equilibrium expenditure does not change.
• C) equilibrium expenditure decreases by the same amount.
• D) the expenditure multiplier means that equilibrium expenditure increases by a larger amount.
• E) the expenditure multiplier means that equilibrium expenditure increases by a smaller amount.

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