Which of the components of total planned autonomous spending has a negative multiplier,and one which is lower in absolute value than the multiplier of the others?
A) autonomous consumption
B) net taxes
C) planned investment
D) government expenditure
E) net exports
Correct Answer:
Verified
Q103: In an economy described by the assumptions
Q104: In a country without foreign trade and
Q105: Figure 3-7 Q106: Assuming a simple Keynesian multiplier,and given an Q107: The establishment of an income tax,ceteris paribus,will Q109: In the consumption function C = a Q110: If the MPS is 0.1 and the Q111: Since income tax revenues will rise (fall)as Q112: A $1 increase in autonomous spending has Q113: Figure 3-7
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