An increase in disposable income would tend to shift aggregate demand right

The idea of the multiplier is that a change in ________ expenditure changes real GDP, which then changes ________ expenditure. The change in total expenditure will be larger than the initial change in ________ expenditure

A) induced; induced; autonomous B) induced; autonomous; induced C) autonomous; induced; autonomous D) induced; autonomous; autonomous E) autonomous; induced; induced

Interest rates increased continuously during the 1970s. The most likely explanation is

A) banking failures that reduced the money supply. B) a rise in the level of income. C) the repeated bouts of recession and expansion. D) increasing expected rates of inflation.