At each round of the multiplier process, increases in income: a. ...

[Capo]

At each round of the multiplier process, increases in income:
 a. leak out of the expenditures stream in the form of investment and taxes.
  b. leak out of the expenditures stream in the form of saving and imports.
  c. are matched by a smaller increase in expenditures.
  d. result in even greater increases in expenditures due to investment and exports.
  e. result in no change in total expenditures.

Question 2

The law of demand refers to the:
 a. decrease in price that results as more units of a product are demanded.
 b. increase in price that results from an increase in demand for a good of limited supply.
  c. inverse relationship between the price of a good and the quantity demanded.
 d. increase in the quantity of a good made available when its price increases.

[tanna.moeller]

Answer to Question 1

c

Answer to Question 2

c