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If Autonomous Spending Decreases, Then

Question 63

Multiple Choice

If autonomous spending decreases, then


A) the expenditure multiplier means that equilibrium expenditure decreases by a larger amount.
B) equilibrium expenditure does not change.
C) equilibrium expenditure decreases by the same amount.
D) the expenditure multiplier means that equilibrium expenditure increases by a larger amount.
E) the expenditure multiplier means that equilibrium expenditure increases by a smaller amount.

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