A small increase in autonomous expenditures

Reference no: EM13982858

According to Keynesians, a small increase in autonomous expenditures most likely causes a large increase in aggregate equilibrium income and output in the economy because:

A.	businesses emulate the spending decisions of their competitors.
B.	as the level of savings increases, a greater pool of loanable funds is available for investment spending by business.
C.	increases in income cause tax revenues to increase, thereby stimulating increases in government spending.
D.	increases in income cause a succession of spending rounds by both businesses and households.

Reference no: EM13982858

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