Which statement about the multiplier is correct?

A.  If a $20 billion increase in spending creates $20 billion of new income in the first round of
the multiplier process and $15 billion in the second round, the multiplier in the economy is
5
B.  If a $40 billion increase in spending creates $40 billion of new income in the first round of
the multiplier process and $20 billion in the second round, the multiplier in the economy is
4
C.  If a $60 billion increase in spending creates $60 billion of new income in the first round of
the multiplier process and $50 billion in the second round, the multiplier in the economy is
5
D.  If an $80 billion increase in spending creates $80 billion of new income in the first round of
the multiplier process and $60 billion in the second round, the multiplier in the economy is
4

D.  If an $80 billion increase in spending creates $80 billion of new income in the first round of the multiplier process and $60 billion in the second round, the multiplier in the economy is 4

Economics

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If consumption is defined as C = 4,500 + 0.75Y, then the marginal propensity to save is 0.25

Indicate whether the statement is true or false

Economics

Refer to the data. U.S. imports are:



A.  $26.
B.  $16.
C.  $24.
D.  $14.

Economics