By saying that the size of the multiplier is determined by the marginal propensity to consume, we are asserting that
A) the crowding out effect is strong.
B) interest rates are the primary determinant of investment spending.
C) automatic stabilizers are not effective when the economy is overheated.
D) income is the primary determinant of consumption spending.
Correct Answer:
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Q54: According to John Maynard Keynes, why does
Q55: Investment spending is
A) equal to real income.
B)
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Q58: If the marginal propensity to consume is
Q60: An increase in the marginal propensity to
Q61: If government spending increases by $10 billion
Q62: The flat portion of the aggregate supply
Q63: Which one of the following is NOT
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