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Marysya12 [62]
3 years ago
8

The expenditure multiplier leads to greater than one-for-one changes in output when autonomous expenditure changes because______

__.
Business
2 answers:
In-s [12.5K]3 years ago
6 0

Answer:

This is because a change in autonomous expenditure changes income and sets off further changes in induced expenditure.

coldgirl [10]3 years ago
4 0

Answer:

the changes in spending will change the income of producers, which in turn lead to greater changes in spending.

Explanation:

The expenditure multiplier

Autonomous expenditure are expenditures that are not affected by the economy's income level, e.g. consumption expenditures that are carried out no matter what the income level is: food, exports, shelter, etc.

There are autonomous consumption expenditures, autonomous investment expenditures, autonomous government expenditures and net exports.

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