32) An increase in autonomous investment spending will likely cause ___________. ЕOC .32Unanswered • 1 attempt leftAn increase in autonomous investmentspending will likely causean equivalent increase inАequilibrium GDPa multiplied increase inequilibrium GDP due to thespending multiplierВa smaller increase inequilibrium GDP since theCmarginal propensity toconsume is less than 1.no effect on equilibrium GDPsince government spending isindependent of income in theincome expenditure model.

Spending multiplier is the ratio of change in equilibrium GDP due to change in autonomous spending.…

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An increase in autonomous investment spending will likely cause ___________

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Question

32) An increase in autonomous investment spending will likely cause ___________.

ЕOC .32
Unanswered • 1 attempt left
An increase in autonomous investment
spending will likely cause
an equivalent increase in
А
equilibrium GDP
a multiplied increase in
equilibrium GDP due to the
spending multiplier
В
a smaller increase in
equilibrium GDP since the
C
marginal propensity to
consume is less than 1.
no effect on equilibrium GDP
since government spending is
independent of income in the
income expenditure model.

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