Multiple Choice
Suppose aggregate output is demand-determined.Suppose a decrease in autonomous investment expenditure of $20 million reduces equilibrium national income by $50 million.The simple multiplier is equal to
A) -2.5.
B) -0.6.
C) 0.4.
D) 0.6.
E) 2.5.
Correct Answer:
Verified
Correct Answer:
Verified
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