If Autonomous Spending Decreases, Then

question 140

Multiple Choice

If autonomous spending decreases, then

• A) equilibrium expenditure decreases by the same amount.
• B) the expenditure multiplier means that equilibrium expenditure decreases by a larger amount.
• C) equilibrium expenditure does not change.
• 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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Definitions:

Payor Bank

A bank that is responsible for paying a check or draft on behalf of its client.

UCC

Short for Uniform Commercial Code, a set of laws that provide legal rules and regulations governing commercial or business dealings and transactions in the United States.

Cashier's Check

A cashier's check, which is underwritten and signed by the bank itself, utilizing its own finances.

Certified Check

Any check that is accepted by the bank from which the funds are drawn.