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Author Question: If autonomous consumption increases, the size of the multiplier would (Read 119 times)

tatyanajohnson

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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.


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Marked as best answer by tatyanajohnson on Apr 19, 2019

ky860224

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tatyanajohnson

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Reply 2 on: Apr 19, 2019
YES! Correct, THANKS for helping me on my review


connor417

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Reply 3 on: Yesterday
Gracias!

 

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