Suppose That the Value of the Multiplier Has Decreased in Recent

question 67

Multiple Choice

Suppose that the value of the multiplier has decreased in recent years. Which of the following could have caused this?

• A) Consumption has become less sensitive to changes in the interest rate.
• B) The costs of inventory storage have risen.
• C) Changes in the way the unemployment compensation fund is financed have made it less expensive for firms to lay off workers.
• D) There has been an increase in the demand for imported goods.

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Definitions:

Original Owners

The first individuals or entities to have legal possession or control of a property or asset.

New Crankshaft

A critical engine component designed to convert the linear motion of pistons into rotational motion to power a vehicle.

Used Cars

Second-hand vehicles that were once registered and utilized by one or more prior owners.

Marginal Products

The extra output that is produced by using one more unit of a particular input, holding all other inputs constant.