Multiple Choice
Which of the following events will cause a reduction in equilibrium output?
A) an increase in the marginal propensity to save
B) an increase in taxes
C) a reduction in the marginal propensity to consume
D) all of the above
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
Q16: Suppose there is an increase in autonomous
Q17: Which of the following occurs when disposable
Q18: Based on our understanding of the model
Q19: Suppose the consumption equation is represented by
Q20: A reduction in the marginal propensity to
Q22: Based on our understanding of the model
Q23: Discuss what is meant by the paradox
Q24: Explain what the multiplier represents.
Q25: Which of the following types of government
Q26: Disposable income equals<br>A)income minus saving.<br>B)income minus both