The expenditure multiplier equals
A) APC - APS where APC is the average propensity to consume and APS is the average propensity to save.
B) 1/(slope of AE curve) .
C) MPC - MPS where MPC is the marginal propensity to consume and MPS is the marginal propensity to save.
D) 1/(1 - slope of AE curve) .
Correct Answer:
Verified
Q133: Autonomous consumption is 50. With every increase
Q134: Q135: A fall in the price level Q136: Q137: The marginal propensity to consume is found Q138: An increase in the price level results Q139: An increase in expected future income _. Q140: The multiplier is the amount by which Q142: At equilibrium expenditure, unplanned changes in inventory Q143: Which of the following does NOT occur
A)shifts the
A)shifts
A)must
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