Why might a large value for the multiplier make an economy less stable? Group of answer...

Why might a large value for the multiplier make an economy less stable? Group of answer choices A)Any change in real GDP has a small effect in autonomous expenditure. B)Any change in real GDP causes a large change in autonomous expenditure. C)Any change in autonomous expenditure has a small effect on real GDP. D)Any change in autonomous expenditure causes a large change in real GDP.

Expert Solution

"D"

Any change in autonomous expenditure causes a large change in the real GDP in the market, any change in consumtption, investment and government exports will have a larger change in the GDP and that makes the the economy unstable.

Rahul Sunny answered 2 years ago

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