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If Autonomous Spending Decreases, Then

Question 140

Multiple Choice

If autonomous spending decreases, then


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