Which of the following is equal to the AD excess divided by the multiplier?
A. The desired fiscal restraint.
B. The MPC.
C. The first-round consumption increase.
D. The cumulative change in income because of a spending change.
Answer:A
Which of the following is equal to the AD excess divided by the multiplier?
A. The desired fiscal restraint. B. The MPC. C. The first-round consumption increase. D. The cumulative change in income because of a spending change.