Suppose changes in autonomous consumption affect investment while changes in aut

Question

Suppose changes in autonomous consumption affect investment while changes in autonomous government spending do not. In this case, identical changes in autonomous consumption and autonomous government spending: A. have identical effects on equilibrium income. B. may have identical effects on equilibrium income depending on the multiplier. C. have different effects on equilibrium income. D. may have identical effects on equilibrium income depending on the size of the change in autonomous net exports and autonomous government spending, as well as whether the President played golf on the weekend or not.

Explanation / Answer

Answer :- C. have different effects on equilibrium income.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.