If autonomous spending decreases, then
A) the expenditure multiplier means that equilibrium expenditure increases by a larger amount.
B) the expenditure multiplier means that equilibrium expenditure increases by a smaller amount.
C) equilibrium expenditure does not change.
D) the expenditure multiplier means that equilibrium expenditure decreases by a larger amount.
E) equilibrium expenditure decreases by the same amount.
Question 2
The uncertainty costs of inflation cause people to
A) incur more shoe leather costs.
B) increase their demand for money.
C) focus on the long run, which increases investment and speeds growth.
D) focus on the short run, which decreases investment and slows growth.
E) increase investment causing economic growth to decrease.
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