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(Advanced Analysis)Assume the Saving Schedule for a Private Closed Economy

Question 68

Multiple Choice

(Advanced analysis) Assume the saving schedule for a private closed economy is S = -20 + .2Y,where S is saving and Y is gross domestic product.The multiplier for this economy is:


A) 3.
B) 4.
C) 5.
D) 10.

Correct Answer:

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