FIGURE 23-3
-Refer to Figure 23-3.Which of the following statements correctly describes the difference between the multipliers (in response to an increase in autonomous expenditure)in Economy A and Economy B? The multiplier in Economy A is ________ while the multiplier in Economy B is ________.
A)very small; equal to one
B)very small; equal to the simple multiplier
C)equal to the simple multiplier; almost zero
D)equal to one; almost zero
E)equal to one; equal to the simple multiplier

Question

FIGURE 23-3
-Refer to Figure 23-3.Which of the following statements correctly describes the difference between the multipliers (in response to an increase in autonomous expenditure)in Economy A and Economy B? The multiplier in Economy A is ________ while the multiplier in Economy B is ________.
A)very small; equal to one 
B)very small; equal to the simple multiplier 
C)equal to the simple multiplier; almost zero 
D)equal to one; almost zero 
E)equal to one; equal to the simple multiplier

Quizplus · Accepted Answer

The multiplier in Economy A is very small, indicating a minimal change in output for a change in autonomous expenditure, while in Economy B, it is equal to the simple multiplier, suggesting a proportional change in output.

FIGURE 23-3 -Refer to Figure 23-3.Which of the Following Statements Correctly Describes