Multiple Choice
Suppose business confidence decreases causing a reduction in investment.Based on our understanding of the model presented in Chapter 3,we know with certainty that a reduction in investment will cause
A) an increase in the multiplier.
B) a reduction in the multiplier.
C) a reduction in the marginal propensity to save.
D) a reduction in consumption as the economy adjusts to this decrease in investment.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Which of the following equals demand in
Q2: Equilibrium in the goods market requires that<br>A)production
Q4: An increase in taxes will cause<br>A)a reduction
Q5: Discuss and explain what effect a reduction
Q6: Based on our understanding of the model
Q7: An increase in the marginal propensity to
Q8: Based on our understanding of the model
Q9: Which of the following represents total saving
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Q11: Based on our understanding of the model