Author Question: All of the following are true statements about the multiplier except A) the multiplier effect ... (Read 126 times)

casperchen82 · **on:** Jun 29, 2018

All of the following are true statements about the multiplier except

A) the multiplier effect occurs when autonomous expenditure changes.
B) the multiplier is a value between zero and one.
C) the smaller the MPS, the larger the multiplier.
D) the multiplier rises as the MPC rises.

Question 2

Refer to Figure 24-4. Given the economy is at point A in year 1, what will happen to the unemployment rate in year 2?

A) It will rise. B) It will remain constant.
C) It will fall. D) not enough information to answer the question