C = $5 million + 0.9(1 - 0.1)Y I = $7 million G = $6 million NX = $1 million Based on the above data, the value of the expenditure multiplier is
A) 1.23.
B) 5.26.
C) 9.09.
D) 11.11.
B
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The slope of the consumption function
A. equals 1. B. is horizontal. C. equals the MPC. D. is vertical.
In periods of high inflation,
a. people who hold money gain b. the purchasing power of a dollar decreases c. the purchasing power of a dollar increases d. those who have loaned money to others gain e. people become reluctant to buy goods and services
According to most economists, the development of markets is:
A. both a necessary and a sufficient condition for development. B. a sufficient condition for development but not a necessary condition. C. a necessary condition for development but not a sufficient condition. D. neither a necessary nor a sufficient condition for development.
Which of the following factors could cause the economy to experience supply-side inflation?
A. Develop new technology to increase productivity. B. government laws which say that the average work week must be reduced by one hour every year C. increased security about jobs and future income D. Increase the number of immigrants allowed into the country.