Which of the following guides sensible decisions regarding the management of business risk in a market system?

In the equation Y = (1/1 – b + v)(a + I + G + X ? u), the term (1/1 – b + v) is referred to as the

a. level of autonomous expenditures. b. autonomous expenditure multiplier. c. balanced budget multiplier. d. tax multiplier.

Trace through the Keynesian cause-and-effect sequence. An increase in the money supply will cause the interest rate to

a. fall, boosting investment and shifting the AD curve to the right, leading to an increase in real GDP b. fall, boosting investment and shifting the AD curve to the right, leading to a decrease in real GDP c. rise, cutting investment and shifting the AD curve to the right, leading to an increase in real GDP d. rise, boosting investment and shifting the AD curve to the left, leading to an increase in real GDP e. fall, cutting investment and shifting the AD curve to the left, leading to a decrease in real GDP