The multiplier is
A) the percentage of a given change in income that goes towards consumption.
B) the number which is multiplied by an autonomous change which gives the change in the equilibrium level of real GDP.
C) the part of consumption that is independent of the level of disposable income.
D) the proportion of total disposable income that is consumed.
B
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Economic theory assumes citizens vote
A) in total ignorance of each issue. B) in their own interest. C) in the public interest. D) by systematically discounting their long-run interests.
The nominal interest
A) will never be negative. B) can be negative if inflation is unexpected. C) can be negative if the inflation rate is greater than the nominal interest rate. D) can be negative if deflation occurs. E) can be negative when the real interest rate is negative.