Suppose consumer confidence falls causing a decrease in consumption. From the goods market model we know with certainty that a decrease in consumption will cause:
A) a reduction in the multiplier.
B) a decrease in the propensity to save.
C) an increase in the multiplier.
D) an increase in the propensity to save.
E) a decrease in output.
Correct Answer:
Verified
Q1: Disposable income equals:
A) income minus both saving
Q2: Suppose the consumption equation is represented by
Q3: Use the following information below to answer
Q5: Which of the following represents the autonomous
Q6: Suppose, as unrealistic as this might be,
Q7: A decrease in taxes will cause:
A) a
Q8: A decrease in the marginal propensity to
Q9: For a closed economy, which of the
Q10: A decrease in the propensity to consume
Q11: A tax hike will cause:
A) a decrease
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