When all the factors of aggregate expenditure are influenced by income, the multiplier becomes a function of the:
A)marginal propensity of government purchases.
B)marginal propensity to consume out of disposable income.
C)marginal propensity of aggregate expenditure.
D)marginal propensity to import.

Question

When all the factors of aggregate expenditure are influenced by income, the multiplier becomes a function of the:
A)​marginal propensity of government purchases.
B)​marginal propensity to consume out of disposable income.
C)​marginal propensity of aggregate expenditure.
D)​marginal propensity to import.

Quizplus · Accepted Answer

The Answer of When all the factors of aggregate expenditure are influenced by income, the multiplier becomes a function of the:
A)​marginal propensity of government purchases.
B)​marginal propensity to consume out of disposable income.
C)​marginal propensity of aggregate expenditure.
D)​marginal propensity to import.

When All the Factors of Aggregate Expenditure Are Influenced by Income