Suppose that the value of the multiplier has decreased in recent years. Which of the following could have caused this?
A) Consumption has become less sensitive to changes in the interest rate.
B) The costs of inventory storage have risen.
C) Changes in the way the unemployment compensation fund is financed have made it less expensive for firms to lay off workers.
D) There has been an increase in the demand for imported goods.
Correct Answer:
Verified
Q344: Firms have no inventories that they can
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Q351: Firms believe that the current economic downturn
Q352: Temporary policy changes have a greater effect
Q353: The presence of automatic stabilizers increases the
Q354: As the economy _, the size of
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