$$\begin{array} { | l | c | c | c | }
\hline & \text { Change in Income } & \begin{array} { c }
\text { Change in } \
\text { Consumption }
\end{array} & \text { Change in Saving } \
\hline \text { Assumed Increase in Investment } & \$ 20 & \$ & \$ 4.00 \
\hline \text { Second Round } & \$ & \$ 12.80 & \$ \
\hline \text { All Other Rounds } & \$ & \$ 51.20 & \$ \
\hline \text { Totals } & \$&\$ & \$ 20.00 \
\hline
\end{array}$$ Refer to the given table, which illustrates the multiplier process. The total change in income resulting from the initial change in investment will be
A) $100.
B) $20.
C) $80.
D) $200.

Question

$$\begin{array} { | l | c | c | c | } 
\hline & \text { Change in Income } & \begin{array} { c } 
\text { Change in } \
\text { Consumption }
\end{array} & \text { Change in Saving } \
\hline \text { Assumed Increase in Investment } & \$ 20 & \$ & \$ 4.00 \
\hline \text { Second Round } & \$ & \$ 12.80 & \$ \
\hline \text { All Other Rounds } & \$ & \$ 51.20 & \$ \
\hline \text { Totals } & \$&\$ & \$ 20.00 \
\hline
\end{array}$$ Refer to the given table, which illustrates the multiplier process. The total change in income resulting from the initial change in investment will be
A) $100.
B) $20.
C) $80.
D) $200.

Quizplus · Accepted Answer

The total change in income is equal to the sum of the initial increase in investment and the total change in saving, which is $20 (initial investment) + $20 (total change in saving) = $40. However, given the context of the multiplier process and the provided table structure, it seems there's a misunderstanding in interpreting the table's data for this response. The correct interpretation should consider the multiplier effect on the total income, which isn't directly provided but implied to be significant, potentially leading to a larger total change in income than just the sum of initial investment and change in saving.

Refer to the Given Table, Which Illustrates the Multiplier Process