Consider a demand-driven economy. Question text If there is an increase in the marginal propensity to consume, this will also increase the multiplier.   Question 9Select one: True False Question text If there is an unexpected drop in autonomous consumption, one of the immediate effects of this will be that inventory levels decrease.  Question 10Select one: True False Question text If the government tries to stimulate the economy by making money transfers to citizens, this will directly enter into GDP.   Question 11Select one: True False Question text The equation AD = c0 + I + c1Y can be thought of as representing the total expenditure in a closed economy with no government.  Question 12Select one: True False

Macroeconomics: Principles and Policy (MindTap Course List)
13th Edition
ISBN:9781305280601
Author:William J. Baumol, Alan S. Blinder
Publisher:William J. Baumol, Alan S. Blinder
Chapter8: Aggregate Demand And The Powerful Consumer
Section: Chapter Questions
Problem 8DQ
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Consider a demand-driven economy.

Question text

If there is an increase in the marginal propensity to consume, this will also increase the multiplier.  

Question 9Select one:

True

False

Question text

If there is an unexpected drop in autonomous consumption, one of the immediate effects of this will be that inventory levels decrease. 

Question 10Select one:

True

False

Question text

If the government tries to stimulate the economy by making money transfers to citizens, this will directly enter into GDP.  

Question 11Select one:

True

False

Question text

The equation AD = c0 + I + c1Y can be thought of as representing the total expenditure in a closed economy with no government. 

Question 12Select one:

True

False

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