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    Macroeconomics Study Set 40
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    Exam 11: Expenditure Multipliers: They Keynesian Model
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    When Autonomous Expenditure Increases, Equilibrium Aggregate Expenditure
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When Autonomous Expenditure Increases, Equilibrium Aggregate Expenditure

Question 163

Question 163

Multiple Choice

When autonomous expenditure increases, equilibrium aggregate expenditure


A) increases by an equal amount.
B) decreases by a greater amount due to the multiplier.
C) decreases by an equal amount to offset the unplanned portion.
D) increases by a greater amount due to the multiplier.

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