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. Using this model, if economists want to estimate the effect of a given change in desired investment on equilibrium national income, they would multiply the change in desired investment by the

A) marginal propensity to save.
B) equilibrium level of national income.
C) reciprocal of the marginal propensity to spend.
D) simple multiplier.
E) average propensity to save.