According to the Aggregate Expenditure Model, When Autonomous Expenditure Increases

question 261

Multiple Choice

According to the aggregate expenditure model, when autonomous expenditure increases, equilibrium expenditure

• A) increases by a larger amount.
• B) increases by an equal amount.
• C) does not change because only induced expenditures increase equilibrium expenditure.
• D) does not change because autonomous expenditures has no effect on equilibrium expenditure.
• E) increases by a smaller amount.

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