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:

Articles of Incorporation

A document filed with a state by the founders of a corporation detailing the major components of a company, such as its objectives, structure, and planned operations.

Authorized Stock

The maximum amount of stock that a corporation is legally permitted to issue, as authorized by its corporate charter.

State Charter

is an official authorization for the creation and operation of a corporation, bank, or other organization within a specific state.

Shares Outstanding

The total number of a company's shares that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s insiders.