Multiple Choice
Use the information below to answer the following questions.
Fact 11.3.1
An economy has a fixed price level, no imports, and no income taxes.MPC is 0.5 and real GDP is $200 billion.Businesses incr investment by $2 billion.
-Consider Fact 11.3.1.The multiplier is
A) 2.0.
B) 0.8.
C) 0.5.
D) 2.5.
E) 0.75
Correct Answer:
Verified
Correct Answer:
Verified
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