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    Exam 8: Aggregate Expenditures
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    (Figure: Simple Keynesian Model) in the Figure Above, Investment Has
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(Figure: Simple Keynesian Model) in the Figure Above, Investment Has

Question 117

Question 117

Multiple Choice

(Figure: Simple Keynesian Model) In the figure above, investment has increased from I0 to I1. The multiplier equals: (Figure: Simple Keynesian Model)  In the figure above, investment has increased from I<sub>0</sub> to I<sub>1</sub>. The multiplier equals:   A)  0.6. B)  2.5. C)  5.0. D)  0.4.


A) 0.6.
B) 2.5.
C) 5.0.
D) 0.4.

Correct Answer:

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