The multiplier in the Keynesian income-expenditure model, would be largest to smallest in order of magnitude inGroup of answer choicesthe simple case without government or external sectors, the open economy case with endogenous taxes, the closed economy with endogenous taxesthe open economy case with endogenous taxes, the simple case without government or external sectors and the closed economy with endogenous taxesthe simple case without government or external sectors, the closed economy case with endogenous taxes, the open economy case with endogenous taxesthe closed economy case with endogenous taxes, the open economy case with endogenous taxes and the simple case without government or external sectors

The reason why multiplier concept is important in the Keynesian model is _______________.a.it explains why a large change in autonomous spending has such a small impact on equilibrium output.b.it explains why a small change in autonomous spending can have a large impact on equilibrium output.c.it is crucial to understanding why changes in investment spending are viewed as the root cause of business cycles fluctuations.d.it explains why a small change in autonomous spending can have a large impact on equilibrium output and is crucial to understanding why changes in investment spending are viewed as the root cause of business cycles fluctuations.

In the Keynesian income-expenditure model which includes both a government sector and an external sector, an increase in autonomous consumption, government expenditure or investment combined with an increase in the marginal tax rateGroup of answer choiceswould increase the multiplier and reduce net exports, assuming the multiplier remains greater than onewould lead to a higher equilibrium level of income and an unchanged level of net exports while the multiplier would be reducedwould lead to an increase in net exports, assuming that the multiplier remains greater than onewould reduce the multiplier but, assuming this remains greater than one, equilibrium income would rise and net exports would fall.

The concept of the "multiplier effect" in Keynesian economics refers to:  A. The impact of government deficits on inflation  B. The tendency of consumers to save rather than spend extra income  C. The magnification of changes in spending into larger changes in aggregate demand and output  D. The process of reducing government debt through increased taxation

In an economy with no taxation and no external trade, the size of the multiplier depends on:Select one correct answerGroup of answer choicesThe marginal propensity to consume.The current level of aggregate demand.Investment.Autonomous consumption.

Adding an external sector to the Keynesian income-expenditure model implies that for equilibrium, in terms of leakages and injectionsGroup of answer choicesplanned saving must equal planned investmentplanned saving must equal planned investment, government expenditure must equal total taxation and exports must equal imports it is not necessary for planned saving and planned investment to be equal but exports must be equal to imports it is not necessary for planned saving and planned investment to be equal but they are unequal then either the budget or the trade balance or both should not be equal to zero.