If Autonomous Consumption Decreases, the Size of the Multiplier Would

question 203

Multiple Choice

If autonomous consumption decreases, 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:

Logistics Department

The division within a company responsible for the management of the movement of goods and services from suppliers to customers.

Operating Divisions

Distinct segments within a company, each responsible for certain operations or business units.

Fixed Costs

Outlays that do not fluctuate with production or sales figures, such as office rent, salary payments, and insurance policies.

Return On Investment (ROI)

A performance measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the net profit from the investment by its original cost.