If autonomous spending decreases, then
A) the expenditure multiplier means that equilibrium expenditure increases by a larger amount.
B) the expenditure multiplier means that equilibrium expenditure increases by a smaller amount.
C) equilibrium expenditure does not change.
D) the expenditure multiplier means that equilibrium expenditure decreases by a larger amount.
E) equilibrium expenditure decreases by the same amount.
D
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Without any restrictions in a perfectly competitive market, if there is a sudden rightward shift in the demand for a good:
A) sellers of the good will increase the supply of the good at the same price. B) sellers of the good will increase the quantity of the good supplied in the market. C) sellers of the good will decrease the supply of the good at the same price. D) sellers of the good will decrease the quantity supplied.
The infant industry argument for trade protectionism holds that
A) new industries sometimes need a protective environment in which to grow so that they can compete with older, more established foreign competitors. B) foreign competitors are often viewed as "infants" by large U.S. firms. C) tariffs are often preferred to quotas. D) quotas raise prices more than tariffs raise prices. E) a and c