Which of the following is true?
A)Higher autonomous expenditures will increase the value of the multiplier.
B)Lower autonomous expenditures will increase the value of the multiplier.
C)Higher national income will increase the value of the multiplier.
D)Lower national income will increase the value of the multiplier.
E)The value of the multiplier is not affected by the level of autonomous expenditures or national income.

Question

Quizplus · Accepted Answer

The value of the multiplier is determined by the marginal propensity to consume and save, not by the level of autonomous expenditures or national income.

Which of the Following Is True