Discussion:
The multiplier effect means that a given change in autonomous expenditures Answer
a. will change equilibrium income by an amount equal to the initial change in autonomous expenditures.
b. will change equilibrium by an amount less than the initial change in autonomous expenditures.
c. will change equilibrium income by an amount greater than the initial change in autonomous expenditures.
d. will change the MPC by a multiple of the initial change in autonomous expenditures. e. will change the MPS by a multiple of the initial change in autonomous expenditures.