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