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.
Correct Answer:

Verified
Correct Answer:
Verified
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