Multiple Choice
Suppose the price level is constant, output is demand- determined, and the economy is closed with no government. If the consumption function is C = (2/3) Y, then the simple multiplier is
A) 2/3.
B) 1.
C) 2.
D) 3.
E) - insufficient information to know.
Correct Answer:
Verified
Correct Answer:
Verified
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