FIGURE 23-3 Refer to Figure 23-3

Multiple Choice

FIGURE 23-3 Refer to Figure 23-3.Which of the following statements correctly describes the difference between the multipliers (in response to an increase in autonomous expenditure) in Economy A and Economy B? The multiplier in Economy A is ________ while the multiplier in Economy B is ________.

A) very small; equal to one
B) very small; equal to the simple multiplier
C) equal to the simple multiplier; almost zero
D) equal to one; almost zero
E) equal to one; equal to the simple multiplier