Suppose That the Value of the Multiplier Has Increased in Recent

Multiple Choice

Suppose that the value of the multiplier has increased in recent years. Which of the following could have caused this?

A) Consumption has become more sensitive to changes in the interest rate.
B) The costs of inventory storage have fallen.
C) Changes in the way the unemployment compensation fund is financed have made it more expensive for firms to lay off workers.
D) "Buy America" campaigns launched by many unions have succeeded in reducing the demand for imported goods.