Larger the multiplier, larger will be the leftward of the AD curve as a result of a reduction in autonomous expenditure.
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Q91: Q92: If autonomous consumption decreases by 50, then: Q93: The paradox of thrift refers to the Q94: In an open macro model with no Q95: Suppose, the multiplier is 4. If the Q97: The marginal propensity to save (MPS) is Q98: In a closed economy without government, the Q99: A decrease in the marginal propensity to Q100: At the point where the aggregate expenditure Q101: The paradox of thrift states that a
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