If Autonomous Consumption Increases, the Size of the Multiplier Would

question 220

Multiple Choice

If autonomous consumption increases, the size of the multiplier would

• A) increase.
• B) decrease.
• C) remain constant.
• D) either increase or decrease depending on the size of the change in autonomous consumption.

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Definitions:

Financial Risks

The possibility of losing financial investment due to various factors including market volatility, inflation, and other economic conditions.

Heuristics

Mental shortcuts or rules of thumb that simplify decision making, not always perfectly accurate but useful for quick judgments.

Concept

An abstract idea or a mental symbol that represents a specific thing, suitable for categorization or understanding.

Algorithm

A step-by-step procedure or formula for solving a problem, often used in computer programming and mathematics.