The multiplier can be expressed as the ratio of the change in Y over the change in I

Market failure is the situation in which a market delivers an inefficient outcome

Indicate whether the statement is true or false

Which of the following is not a basic assumption underlying the theory of consumer behavior?

A) Consumers prefer more to less. B) Consumer preferences depend on the amounts of goods they consume as well as the amounts being consumed by other consumers. C) Goods are continuously divisible, that is, consumers can always purchase one more or one less unit of a good. D) Consumers have well-behaved preferences, that is, preference orderings are complete.