Author Question: If autonomous spending decreases, then A) the expenditure multiplier means that equilibrium ... (Read 505 times)

Chelseaamend

  • Hero Member
  • *****
  • Posts: 545
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.



Melissahxx

  • Sr. Member
  • ****
  • Posts: 304
Answer to Question 1

D

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Alcohol acts as a diuretic. Eight ounces of water is needed to metabolize just 1 ounce of alcohol.

For a complete list of videos, visit our video library