Based on our understanding of the model presented in Chapter 3, a reduction in investment will cause
A) an increase in the multiplier.
B) a reduction in the multiplier.
C) a reduction in the marginal propensity to save.
D) a reduction in output.
E) both B and D
D
Economics
You might also like to view...
In the market for French wines, an increase in demand is illustrated by:
A) a movement up the demand curve. B) a movement down the demand curve. C) a shift of the demand curve to the left. D) a shift of the demand curve to the right.
Economics
If a firm is forced to take external costs into account, it will
A) reduce production and charge a higher market price. B) increase production and charge a lower market price. C) reduce prices and hire more workers. D) reduce prices and hire fewer workers.
Economics