Use the following information below to answer the following question(s) : C = 800 + 0.65YD
I = 750
G = 1500
T = 900
-Refer to the information above. Which of the following events would cause an increase in the size of the multiplier?
A) An increase in the propensity to save.
B) A reduction in taxes.
C) An increase in investment.
D) A reduction in government spending.
E) An increase in the propensity to consume.
Correct Answer:
Verified
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