2. If autonomous expenditure remains constant, and there is a decrease in the proportion of aggregate disposable income consumed in the economy, then... A) equilibrium income will be reduced and the multiplier will be increased. B) equilibrium income will be increased. and the multiplier will be increased. C) equilibrium income will be reduced and the multiplier will be reduced. D) equilibrium income will be increased and the multiplier will be reduced. E) equilibrium income will be increased and the multiplier will remain unchanged.

2. If autonomous expenditure remains constant, and there is a decrease in the proportion of aggregate disposable income consumed in the economy, then... A) equilibrium income will be reduced and the multiplier will be increased. B) equilibrium income will be increased. and the multiplier will be increased. C) equilibrium income will be reduced and the multiplier will be reduced. D) equilibrium income will be increased and the multiplier will be reduced. E) equilibrium income will be increased and the multiplier will remain unchanged.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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