The fluctuations in the income level that result from changes in investment spending
A) tend to be larger with a larger mpc
B) tend to be larger if the income tax rate (t) is larger
C) tend to be larger with a larger mps
D) tend to be smaller if the apc is smaller
E) depend only on the magnitude of the changes in investment spending but not on the size of the mpc
Correct Answer:
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A)not affect
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Q27: Assume a simple model with no government
Q28: Assume a model of the expenditure sector
Q29: Which of the following will NOT happen
Q31: If total autonomous spending is A? =
Q32: Assume an economy with no foreign sector,
Q33: Assume an economy with no foreign sector,
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