In the Keynesian-Cross model, if autonomous investment increases by 100 and government transfers decrease by 100, which of the following is true? A. Income will increase by 100. B. Income will increase by the multiplier times 100. C. Income will not change. D. Income will decrease by the multiplier times 100. E. Income will increase, but we can’t say by how much.

In the Keynesian-Cross model, if autonomous investment increases by 100 and government transfers decrease by 100, which of the following is true? A. Income will increase by 100. B. Income will increase by the multiplier times 100. C. Income will not change. D. Income will decrease by the multiplier times 100. E. Income will increase, but we can’t say by how much.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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