Question 4 (1.00 points)

Question

The multiplier effect indicates that:

a. a decline in the interest rate will cause a proportionately larger increase in investment.

b. a change in spending will change aggregate income by a larger amount.

c. a change in spending will increase aggregate income by the same amount.

d. an increase in total income will generate a larger change in aggregate expenditures.

Answer 1

what is critical in determining whether something is produced as a public good?