Figure 3-7

-In Figure 3-7 above,the multiplier effect does NOT explain
A)the increase in equilibrium income.
B)the increase in induced saving.
C)the increase in AP.
D)all of the above.

Question

Figure 3-7
 
-In Figure 3-7 above,the multiplier effect does NOT explain
A)the increase in equilibrium income. 
B)the increase in induced saving. 
C)the increase in AP. 
D)all of the above.

Quizplus · Accepted Answer

The multiplier effect explains the increase in equilibrium income and induced saving, but not the increase in average propensity (AP).

Figure 3-7 -In Figure 3-7 Above,the Multiplier Effect Does NOT Explain