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Title: Firms have no inventories that they can draw down to meet an increase in demand. This will: Post by: NYC on Jan 12, 2016 Firms have no inventories that they can draw down to meet an increase in demand. This will:
A) have no effect on the multiplier, because the MPC remains unchanged. B) increase the size of the multiplier, because output will need to immediately respond to changes in demand. C) decrease the size of the multiplier, because firms will be able to respond more quickly to a change in demand. D) either increase or decrease the multiplier, depending on the size of the MPC. Title: Re: Firms have no inventories that they can draw down to meet an increase in demand. This will: Post by: Jesslyn on Jan 23, 2016 Content hidden
Title: Re: Firms have no inventories that they can draw down to meet an increase in demand. This will: Post by: NYC on Jan 28, 2016 Thanks for answering :)
Title: Re: Firms have no inventories that they can draw down to meet an increase in demand. This will: Post by: Aditya Pawar on Jan 22, 2020 thank you
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