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If autonomous consumption increases, the size of the multiplier would

miks

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If autonomous consumption increases, the size of the multiplier would

Question 1.

Midwest State University in Nebraska is trying to convince Nebraska taxpayers that the tax dollars spent at Midwest State University are well spent. One of the university's arguments is that for every $1 spent by Midwest State University an additional $5 of expenditures are generated within Nebraska. Midwest State University is arguing that the multiplier for their expenditures is

▸ 0.2.

▸ 1.

▸ 4.

▸ 5.

Question 2.

If autonomous consumption increases, the size of the multiplier would

▸ increase.

▸ decrease.

▸ remain constant.

▸ either increase or decrease depending on the size of the change in autonomous consumption.

Textbook

Principles of Economics

Edition: 12^th

Authors: Case, Fair, Oster

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More solutions for this book are available here

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