If the Keynesian multiplier is defined as 1/ (1-c) where c is the proportion of income that is consumed, then when c increases, a. the multiplier decreasesb. income declines c. the multiplier increases d. investment increases
If the Keynesian multiplier is defined as 1/ (1-c) where c is the proportion of income that is consumed, then when c increases, a. the multiplier decreasesb. income declines c. the multiplier increases d. investment increases
Chapter9: The Keynesian Model In Action
Section: Chapter Questions
Problem 11SQ
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Question
If the Keynesian multiplier is defined as 1/ (1-c) where c is the proportion of income that is consumed, then when c increases,
a. the multiplier decreases
b. income declines
c. the multiplier increases
d. investment increases
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