The multiplier shows the relationship between changes in a component of spending, say, investment,
and the consequent changes in real income and output.
Correct Answer:
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Q178: If a $50 billion decrease in investment
Q179: A specific investment will be undertaken if
Q180: The average propensity to consume is defined
Q181: The multiplier is equal to the reciprocal
Q182: When a consumption schedule is plotted as
Q184: Economists widely agree that the value of
Q185: The slope of the consumption schedule between
Q186: Personal saving is equal to
A) disposable income
Q187: As disposable income decreases, the
A) average propensity
Q188: As disposable income decreases, consumption
A) and saving
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