Within the Keynesian model, the multiplier effect tends to
a. smooth out the up- and down- swings of the business cycle.
b. promote price stability.
c. magnify small changes in spending into much larger changes in output and employment.
d. reduce the impact of an increase in investment on output and employment.
C
Economics
You might also like to view...
If there is an expansionary gap in the short run, the adjustment to the long-run equilibrium involves expansion of aggregate demand
Indicate whether the statement is true or false
Economics
If a U.S. importer has to write a $200 check to cover a 20,000 yen purchase from Japan, the exchange rate is
A. 200 yen to a dollar. B. 100 yen to a dollar. C. 20 yen to a dollar. D. 10 yen to a dollar.
Economics