At each round of the multiplier process, increases in income:

a. leak out of the expenditures stream in the form of investment and taxes.
b. leak out of the expenditures stream in the form of saving and imports.
c. are matched by a smaller increase in expenditures.
d. result in even greater increases in expenditures due to investment and exports.
e. result in no change in total expenditures.

c

Economics

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Figure 17-13 In , if the world price of a baseball is $3 and a tariff of $1 per baseball is imposed in the United States, how many baseballs will the United States import?


a.
4,000
b.
6,000
c.
8,000
d.
10,000
e.
12,000

Economics

Which of the following happens during an economic recession?

a. At E1, RGDP is below potential GDP. b. At E1, RGDP is above potential GDP. c. At E1, RGDP is equal to potential GDP. d. At E1, RGDP fluctuates with potential GDP.

Economics