Consider a Simple Macro Model with a Constant Price Level

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.If the simple multiplier is 3 and there is a $2 billion increase in autonomous investment spending,then the equilibrium level of income will increase by

A) $1.2 billion.
B) $2 billion
C) $3 billion.
D) $4.5 billion.
E) $6 billion.