Use the figure below to answer the following questions.
Figure 27.3.1
The economy shown in the graph does not engage in international trade and has no government. Planned aggregate expenditure equals the sum of consumption expenditure (C) and investment (I) .
-Refer to Figure 27.3.1. The multiplier for this economy is
A) 2.
B) 4.
C) 2.5.
D) 1.
E) 3.
Correct Answer:
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