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Home Q & A Board Other Fields Homework Help Business Economics
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Hpreet796 Hpreet796
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4 years ago

Question 1.

If the economy has automatic stabilizers built in, the multiplier will



▸ be smaller than it would have been in the absence of automatic stabilizers.

▸ be larger than it would have been in the absence of automatic stabilizers.

▸ be zero.

▸ be infinitely larger than it would have been in the absence of automatic stabilizers.

Question 2.

Suppose that the value of the multiplier has increased in recent years. Which of the following could have caused this?



▸ Consumption has become more sensitive to changes in the interest rate.

▸ The costs of inventory storage have fallen.

▸ Changes in the way the unemployment compensation fund is financed have made it more expensive for firms to lay off workers.

▸ "Buy America" campaigns launched by many unions have succeeded in reducing the demand for imported goods.
Textbook 
Principles of Economics

Principles of Economics


Edition: 12th
Authors:
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DoggggDogggg
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Hpreet796 Author
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4 years ago
Helps a lot... Now I'm ready for my quiz
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