Multiple Choice
The smaller the marginal propensity to consume,
A) the greater of the multiplier.
B) the lower the value of the multiplier.
C) the greater the initial change in real GDP.
D) the greater the initial change in aggregate expenditures.
Correct Answer:

Verified
Correct Answer:
Verified
Q14: Use the following to answer questions .<br>Exhibit:
Q15: Use the following to answer questions .<br>Exhibit:
Q16: A change in aggregate demand causes a
Q17: Use the following to answer questions .<br>Exhibit:
Q18: Consider a simple aggregate expenditure model where
Q20: Use the following to answer questions .<br>Exhibit:
Q21: Let Y = real GDP and Y<sub>d</sub>
Q22: An upward shift in the consumption function
Q23: The notion that a change in autonomous
Q24: Use the following to answer questions .<br>Exhibit: