The multiplier process can occur when a decrease in investment spending… a) Increases household saving, causing consumers to buy more goods and services. b) Reduces household incomes, causing consumers to buy fewer goods and services. c) Increases household incomes, causing consumers to buy fewer goods and services. d) Reduces household incomes, causing consumers to buy more goods and services
The multiplier process can occur when a decrease in investment spending… a) Increases household saving, causing consumers to buy more goods and services. b) Reduces household incomes, causing consumers to buy fewer goods and services. c) Increases household incomes, causing consumers to buy fewer goods and services. d) Reduces household incomes, causing consumers to buy more goods and services
Chapter18: The Keynesian Model
Section: Chapter Questions
Problem 6SQ
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The multiplier process can occur when a decrease in investment spending…
a) Increases household saving, causing consumers to buy more goods and services.
b) Reduces household incomes, causing consumers to buy fewer goods and services.
c) Increases household incomes, causing consumers to buy fewer goods and services.
d) Reduces household incomes, causing consumers to buy more goods and services
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