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The Income-Expenditure Multiplier Is the Effect of a One-Unit Increase

Question 115

Multiple Choice

The income-expenditure multiplier is the effect of a one-unit increase in


A) disposable income on consumption.
B) disposable income on short-run equilibrium output.
C) autonomous planned aggregate expenditure on short-run equilibrium output.
D) autonomous planned aggregate expenditure on the output gap.
E) unplanned inventory investment on autonomous planned aggregate expenditurE.

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