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    Macroeconomics Study Set 47
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    Exam 3: The Goods Market
  5. Question
    Suppose the Consumption Equation Is Represented by C = 380
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Suppose the Consumption Equation Is Represented by C = 380

Question 24

Question 24

Multiple Choice

Suppose the consumption equation is represented by C = 380 + 0.75YD. The multiplier in this economy is:


A) 4.0.
B) 0.5.
C) 5.0.
D) 1.0.
E) 2.0.

Correct Answer:

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