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Ca = 25 + 0

Question 7

Multiple Choice

Ca = 25 + 0.75 (Y - T) Ig = 50 Xn = 10
G = 70
T = 30
(Advanced analysis) The accompanying equations are for a mixed open economy.The letters Y, Ca, Ig, Xn, G, and T stand for GDP, consumption, gross investment, net exports, government purchases, and net taxes, respectively.Figures are in billions of dollars.The multiplier for this economy is


A) 4.
B) 3.
C) 2.
D) 2.33.

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