Consider a Simple Macro Model with Demand-Determined Output

Multiple Choice

Consider a simple macro model with demand-determined output.If z is the marginal propensity to spend out of national income,Y is national income and A is autonomous expenditure,then the simple multiplier is equal to

A) z.
B) 1 - z.
C) 1/z.
D) 1/(1 - z) .
E) Y/(1 - z) .