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. |