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Question 157

Multiple Choice

Use the information below to answer the following questions.
Fact 27.5.2
The economy of Tinseltown has a consumption function of C = 15 + 0.7Y , investment equal to 8, government expenditure equal to 12, exports equal to 20, and an import function of M = 0.2Y.
-Refer to Fact 27.5.2. What is the multiplier for this economy?


A) 0.5
B) 3.33
C) 10
D) 2
E) 1

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