November 27, 2015

Homework Help: economics

Posted by thabo on Saturday, September 12, 2009 at 6:38am.

Question 4 (1.00 points)

The multiplier effect indicates that:

a. a decline in the interest rate will cause a proportionately larger increase in investment.

b. a change in spending will change aggregate income by a larger amount.

c. a change in spending will increase aggregate income by the same amount.

d. an increase in total income will generate a larger change in aggregate expenditures.

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