Insufficient _____ can make regulation counterproductive

The multiplier is the ratio of the

A. change in the equilibrium level of real GDP to the change in autonomous expenditures. B. change in autonomous expenditures to the change in the equilibrium level of real GDP. C. change in induced expenditures to the change in autonomous expenditures. D. equilibrium level of real GDP to the change in induced expenditures.

Keynes thought that the key to determining the broader economic effects of investment fluctuations

A. was to closely regulate the real interest rate. B. was to understand how changes in the money supply influences consumption decisions. C. was to understand the relationship between how much people earn and their willingness to engage in personal consumption spending. D. was to examine how businesses react to flexible prices and wages.