Which of the Following Increases the Size of the Expenditure

question 246

Multiple Choice

Which of the following increases the size of the expenditure multiplier?

• A) a decrease in the marginal propensity to consume
• B) an increase in autonomous spending
• C) an increase in the marginal income tax rate
• D) a decrease in the marginal propensity to import
• E) an increase in investment

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at those prices.

Price and Demand

An economic principle stating that the demand for a product inversely varies with its price; as the price increases, demand usually decreases.

Specific Period

A distinct length of time with a defined beginning and end, often referenced in contracts, projects, or historical contexts.

Relationship

Pertains to the connections and interactions between a business and its customers, aiming to foster loyalty and long-term engagement.