Suppose the consumption equation is represented by C = 380 + 0.75YD. The multiplier in this economy is:
A) 4.0.
B) 0.5.
C) 5.0.
D) 1.0.
E) 2.0.
Correct Answer:
Verified
Q1: Disposable income equals:
A) income minus both saving
Q3: Use the following information below to answer
Q4: Suppose consumer confidence falls causing a decrease
Q5: Which of the following represents the autonomous
Q6: Suppose, as unrealistic as this might be,
Q7: A decrease in taxes will cause:
A) a
Q8: A decrease in the marginal propensity to
Q9: For a closed economy, which of the
Q10: A decrease in the propensity to consume
Q11: A tax hike will cause:
A) a decrease
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