Solved

The Formula for the Effect of Any Change in Autonomous

Question 39

Multiple Choice

The formula for the effect of any change in autonomous spending, △A, where b equals the MPC is

A) △Y = △A [1/(1 ‑ b) ].
B) △Y = △A [b/(1 ‑ b) ].
C) △Y = △A [1/(1 + b) ].
D) △Y = △A [b/(1 + b) ].

Related Questions

Q34: If consumption increases by $400 when income

Q35: According to Keynes,<br>A) prices decline as inventories

Q36: When examining the causes of unemployment, Keynes

Q37: As part of the "exchange rate effect

Q38: If the aggregate supply curve is vertical,

Q40: In the Keynesian model, the demand for

Q41: In the Keynesian model, a decline in

Q42: Unlike the Classical economists, Keynes believed that

Q43: In the Keynesian model, interest rates are

Q44: If the interest rate rose above the