Refer to the information. The multiplier in this economy is:





A.  4.

B.  5.

C.  2.5.

D.  3.5.


C.  2.5.

Economics

You might also like to view...

In reality, the wage-gap between two countries will:

A. Always be reduced to zero through migration B. Be greater than zero because of migration costs C. Always be sufficient to cover the marginal costs of migration D. Be smaller the greater the distance between the countries

Economics

The self-correcting tendency of the economy means that falling inflation eventually eliminates:

A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.

Economics

According to the graph shown, total surplus is area:



A. A + B + C.
B. B.
C. A.
D. A + B.

Economics

In which of the following cases was the inflation rate 12 percent over the last year?

a. One year ago the price index had a value of 110 and now it has a value of 120. b. One year ago the price index had a value of 120 and now it has a value of 132. c. One year ago the price index had a value of 134 and now it has a value of 150. d. One year ago the price index had a value of 145 and now it has a value of 163.

Economics