Question: Can you please explain why a) and b) are FALSE? A15. In the multiplier model, a A higher share of credit-constrained households increases the impact

Can you please explain why a) and b) are FALSE?

Can you please explain why a) and b) are FALSE? A15. In

A15. In the multiplier model, a A higher share of credit-constrained households increases the impact on output of any change in autonomous aggregate demand. F The paradox of thrift means that adopting a policy of austerity in a recession (by reducing government expenditure) will worsen the public finances as compared with a policy that keeps government expenditure unchanged. T F (c) A rise in household wealth relative to target will ceteris paribus shift the AD curve upwards and raise output. T

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