When all the factors of aggregate expenditure are influenced by ...

[lilldybug07]

When all the factors of aggregate expenditure are influenced by income, the multiplier becomes a function of the:
 a. marginal propensity of government purchases.
 b. marginal propensity to consume out of disposable income.
  c. marginal propensity of aggregate expenditure.
 d. marginal propensity to import.

Question 2

Governments in developing countries typically play a larger role in investment spending in their economies than do the governments of industrial countries.
 a. True
  b. False
  Indicate whether the statement is true or false

[joneynes]

Answer to Question 1

c

Answer to Question 2

True