The larger the MPS, the smaller the value of the multiplier

The aggregate demand multiplier effect says that an initial increase in expenditure plans leads to an induced

A) increase in consumption expenditure. B) increase in production expenditure. C) increase in government expenditures on goods and services. D) decrease in the price level. E) increase in exports.

The theory that regulation seeks an efficient use of resources is the

A) social interest theory. B) producer surplus theory. C) consumer surplus theory. D) capture theory. E) deadweight loss theory.