Question: Question 2 9 ( 1 point ) ListenThe numerical value of the spending multiplier is smaller the:greater the change in government purchases in the economygreater
Question pointListenThe numerical value of the spending multiplier is smaller the:greater the change in government purchases in the economygreater the change in the price level that follows a spending changelarger the marginal propensity to consumegreater the change in the interest rate in the economylarger the marginal propensity to withdrawQuestion pointListenA decrease in taxes of a given amount will have a smaller impact upon the aggregate demand curve than will a rise in government purchases of the same amount because:the MPC is smaller in the private sector than it is in the public sectorincreases in government purchases always tend to reduce private investmentaggregate demand is not affected by tax cutssome of the tax cut will not be spentexports rise with an increase in government purchases
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