Suppose That Input Prices Respond Very Quickly to Output Price

question 56

Multiple Choice

Suppose that input prices respond very quickly to output price. This will

• A) reduce the value of the multiplier.
• B) increase the value of the multiplier.
• C) have no effect on the value of the multiplier.
• D) either increase or decrease the value of the multiplier depending on the value of the MPC.

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